Fifth Third to buy Comerica for $10.9 billion in deal that will make it ninth-largest bank in US

Core Viewpoint - Fifth Third Bancorp has agreed to acquire Comerica for $10.9 billion, pending regulatory approval, which will create the ninth-largest bank in the U.S. with $288 billion in assets [1]. Group 1: Acquisition Details - The acquisition is an all-stock transaction aimed at enhancing Fifth Third's competitiveness against larger banks while expanding its presence in the Southeast and Southwest regions [1]. - This transaction is noted as the largest bank acquisition announced in a year marked by an increase in such transactions following a mini banking crisis in 2023 [3]. Group 2: Market Reaction - Comerica's stock rose by 14% in early trading on the announcement day, reflecting a year-to-date increase of the same percentage, while Fifth Third's stock fell approximately 1% but is up 5% for the year [2]. Group 3: Strategic Implications - Fifth Third's CEO Tim Spence emphasized that this acquisition is pivotal for accelerating the bank's strategy to build density in high-growth markets and enhance commercial capabilities [2]. - Comerica's strong middle market franchise and complementary footprint were highlighted as key factors making this acquisition a natural fit [3]. Group 4: Context of the Acquisition - The acquisition comes after Comerica faced pressure from analysts and investors to sell, with activist investor Holdco Asset Management urging the bank to market itself as an acquisition target [6]. - The regional banking sector has seen increased consolidation as banks seek competitive scale in response to recent challenges [3][8].