Fifth Third Bancorp has agreed to acquire Texas-based Comerica Bank in an all-stock transaction valued at $10.9 billion, creating the ninth-largest bank in the US with approximately $288 billion in combined assets.
The deal, expected to close by the end of Q1 2026, will see Comerica shareholders receive 1.8663 Fifth Third shares for each Comerica share they own. Based on Fifth Third’s closing price on 3 October 2025, this represents $82.88 per share and a 20% premium to Comerica’s 10-day volume-weighted average stock price. Upon completion, Fifth Third shareholders will hold approximately 73% of the combined entity, while Comerica shareholders will own the remaining 27%.
The acquisition represents a significant geographic expansion for Ohio-based Fifth Third, which has traditionally concentrated its operations in the Midwest. The merger will substantially enhance the bank’s presence in “high-growth markets”, with more than half of Fifth Third’s branches expected to be located in the Southeast, Texas, Arizona, and California by 2030.
Fifth Third describes the transaction as central to its “long-term growth plan, enhancing scale, profitability, and geographic reach”. The bank has been actively pursuing southeastern expansion for some time, appointing former M&T Bank CFO Darren King as head of regional banking in April to lead this strategic initiative.
Leadership of the merged organisation will draw from both institutions to ensure “business and client continuity”, says Fifth Third. Curt Farmer, currently chairman, president, and CEO of Comerica, will serve as vice chair of the combined entity, while Peter Sefzik, Comerica’s chief banking officer, will lead Fifth Third’s wealth and asset management division. Three Comerica board members are set to assume positions on Fifth Third’s board of directors, with Farmer also joining the board upon his retirement.
The Comerica acquisition continues Fifth Third’s active merger and acquisition strategy. In August, the bank acquired cash management software provider DTS Connex for an undisclosed amount, expanding its capabilities in cash logistics, infrastructure, and risk management services.
Source: https://www.fintechfutures.com/
