Core Points - Fifth Third Bancorp is acquiring Comerica for $10.9 billion in an all-stock transaction, creating the 9th largest bank in the U.S. with approximately $288 billion in assets [1] - The merger will enhance Fifth Third's presence in high-growth markets, particularly in the Southeast, Texas, and California, with over half of its branches expected to be located in these regions by 2030 [1][2] - Comerica shareholders will receive 1.8663 shares of Fifth Third for each share they own, equating to $82.88 per share based on Fifth Third's closing stock price [2] Company Ownership Structure - Post-merger, Fifth Third shareholders will own about 73% of the combined entity, while Comerica shareholders will hold approximately 27% [3] Industry Context - Recent consolidation trends in the regional banking sector include PNC Financial's acquisition of FirstBank for $4.1 billion, which will enhance PNC's presence in Colorado and Arizona [3][4] - PNC is categorized as a super regional bank, which, while significant in size, is still smaller than major banking giants like Wells Fargo, Bank of America, and JPMorgan Chase [5] Board Composition - Three members from Comerica's board will join Fifth Third's board post-acquisition, with Comerica's CEO serving as vice chair and its chief banking officer leading Fifth Third's wealth and asset management business [6] Market Reaction - Following the announcement, Comerica's shares increased by 11%, while Fifth Third's shares decreased by 2% [7]
Fifth Third Bancorp is buying Comerica for $10.9 billion in an all-stock deal that will create the 9th largest U.S. bank