Fifth Third to buy Comerica for $10.9 billion in biggest US bank deal of the year

Core Viewpoint - Fifth Third Bancorp has agreed to acquire Comerica for $10.9 billion, pending regulatory approval, which will create one of the largest commercial banks 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, Tim Spence, emphasized that this merger is a significant step in their strategy to strengthen their market position in high-growth areas and enhance commercial capabilities [2][3]. - The deal represents the largest U.S. bank acquisition in nearly three years, highlighting a trend of increasing bank mergers in 2023 [3]. Group 2: Market Reactions - Following the announcement, Comerica's stock rose by 17% in early trading and has increased by 34% year-to-date, while Fifth Third's stock saw a slight increase of approximately 2% after initially falling [3]. - The acquisition comes amid a backdrop of regional banks seeking to consolidate following a mini banking crisis in 2023, which exposed competitive disadvantages compared to larger banks [4]. Group 3: Industry Context - The Trump administration's more lenient approach to bank merger policies has facilitated such transactions, allowing regional banks to pursue growth through acquisitions [4]. - Other notable bank deals in 2023 include PNC Bank's acquisition of FirstBank for $4.1 billion and Pinnacle Financial Partners' acquisition of Synovus for $8.6 billion [5][6]. - Capital One's recent completion of a $35.3 billion acquisition of Discover Financial further illustrates the trend of consolidation in the banking sector [7].