Fifth Third Bancorp enters $10.9bn deal to acquire Comerica

Core Viewpoint - Fifth Third Bancorp has agreed to acquire Comerica in an all-stock transaction valued at $10.9 billion, creating the ninth largest bank in the US with approximately $288 billion in assets [1][2]. Group 1: Transaction Details - Comerica stockholders will receive 1.8663 Fifth Third shares for each share they hold, equating to $82.88 per share based on Fifth Third's closing stock price on October 3, 2025, which represents a 20% premium to the ten-day volume-weighted average stock price of Comerica [1]. - Post-merger, Fifth Third shareholders will own about 73% of the merged entity, while Comerica shareholders will hold 27% [2]. Group 2: Strategic Rationale - The merger is expected to be "immediately accretive" to shareholders and aims to enhance efficiency, return on assets, and return on tangible common equity ratios [3]. - By combining Fifth Third's retail banking and digital capabilities with Comerica's middle market banking franchise, the merged entity seeks to strengthen its position in high-growth markets, operating across 17 markets including the Southeast, Texas, and California [3][4]. Group 3: Future Projections and Leadership - By 2030, over half of Fifth Third's branches are projected to be located in the Southeast, Texas, Arizona, and California [4]. - The merger will create two $1 billion recurring and high return fee businesses: commercial payments and wealth and asset management, with Comerica's chief banking officer leading the wealth & asset management business [4]. - Three Comerica Board members will join Fifth Third's board after the transaction closes [4]. Group 4: Timeline and Strategic Goals - The merger is expected to be finalized by the end of the first quarter of 2026, pending shareholder and regulatory approvals [5]. - Fifth Third Bank's leadership views this combination as a pivotal moment to accelerate their strategy in high-growth markets and deepen commercial capabilities [5].