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

Core Viewpoint - Fifth Third Bancorp has agreed to acquire Comerica for $10.9 billion, pending regulatory approval, which will create the ninth-largest commercial bank in the U.S. with total assets of $288 billion [1][2]. 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 [2]. - Fifth Third's CEO highlighted the strategic importance of this merger to build density in high-growth markets and enhance commercial capabilities [2]. - The deal represents the largest U.S. bank acquisition in nearly three years, reflecting a trend of increasing bank mergers following a mini banking crisis in 2023 [4]. Group 2: Market Reactions - Comerica's stock rose by 17% in early trading following the announcement, and it has increased by 34% year-to-date. Fifth Third's stock rose approximately 2% after initially falling, with a year-to-date increase of 7% [3]. Group 3: Industry Context - The acquisition is part of a broader trend of regional banks seeking to strengthen their positions in the market, influenced by a more permissive merger policy under the Trump administration [4]. - Other notable bank deals this year include PNC Bank's agreement to purchase FirstBank for $4.1 billion and Pinnacle Financial Partners' acquisition of Synovus for $8.6 billion [5][6]. - Capital One recently completed its $35.3 billion acquisition of Discover Financial, indicating a robust merger activity in the banking sector [7].