Fifth Third Bancorp to acquire Comerica in $10.9 billion deal

Fifth Third Bancorp, a major regional bank based in Cincinnati, has agreed to acquire Comerica Incorporated, a Dallas-headquartered lender, in an all-stock transaction valued at US$10.9 billion. The announcement, made on 6 October 2025, will create the ninth-largest bank in the United States by assets, with approximately US$288 billion in total assets, US$224 billion in deposits, and US$174 billion in loans.

The merger enhances Fifth Third's presence in high-growth markets such as Texas, California, Arizona, and the Southeast, complementing its strong Midwest footprint. Comerica shareholders will receive 1.8663 shares of Fifth Third for each Comerica share, equating to US$82.88 per share based on Fifth Third's closing price on 3 October 2025—a 20 per cent premium to Comerica's 10-day volume-weighted average price. Post-merger, Fifth Third shareholders will own about 73 per cent of the combined entity, with Comerica holders owning the remaining 27 per cent.

The deal arrives amid a wave of regional bank consolidations, following PNC Financial Services Group's recent US$4.1 billion acquisition of FirstBank. It reflects a pro-business regulatory environment under the current administration, which has eased scrutiny on mergers, enabling larger institutions to achieve scale amid economic pressures.

“The things that have defined Fifth Third over the course of the past 10 years have been this focus on stability, profitability and our ability to drive organic growth,” said Tim Spence, CEO of Fifth Third Bancorp. “What’s defined Comerica is an incredible middle-market commercial banking platform, and the access that Comerica has to high growth markets like Texas and large economies like California.”

“Joining with Fifth Third – with its strengths in retail, payments and digital – allows us to build on our leading commercial franchise and further serve our customers with enhanced capabilities across more markets,” wrote Curt Farmer, CEO of Comerica, in a statement.

The transaction is expected to close in the first quarter of 2026, subject to shareholder and regulatory approvals. Three members of Comerica's board will join Fifth Third's board upon completion. Curt Farmer will assume the role of vice chair of the combined company, while Peter Sefzik, Comerica's chief banking officer, will lead Fifth Third's wealth and asset management business.

The merger may lead to branch closures and rebranding efforts, including potential changes to Comerica Park, the Detroit Tigers' stadium sponsored by Comerica. Shares in Comerica rose nearly 14 per cent following the announcement, while Fifth Third's stock fell about 1.4 per cent.

“The combination underscores the ongoing consolidation in US regional banking, driven by the need for diversified revenue streams and technological integration”, noted a banking analyst in Chicago.