Fifth Third Bancorp Announces $10.9 Billion All-Stock Acquisition of Comerica

Fifth Third Bancorp Announces $10.9 Billion Merger With Comerica to Form Major U.S. Bank

Creating a Banking Powerhouse with $288 Billion in Assets

In a strategic move to expand its presence, Fifth Third Bancorp has announced an all-stock acquisition of Comerica, valued at $10.9 billion. This merger will position the newly formed entity as the ninth-largest bank in the United States by assets, totaling approximately $288 billion. The transaction is projected to close in the first quarter of 2026, marking a significant milestone in the banking industry.

Strategic Expansion in High-Growth Markets

Fifth Third CEO Tim Spence emphasized the strategic importance of the merger, highlighting that it aligns with the company’s goals to enhance its footprint in high-growth markets and bolster its commercial capabilities. According to Spence, “This combination marks a pivotal moment for Fifth Third as we accelerate our strategy to build density in high-growth markets and deepen our commercial capabilities.”

Boost in Stock Market Performance

The announcement triggered a notable uptick in Comerica shares, which surged by 11.5% in premarket trading. Conversely, Fifth Third shares saw a slight decrease, falling by about 3%. These fluctuations reflect market reactions to the potential impact of the merger.

Enhanced Capabilities Across More Markets

Comerica’s chief executive, Curt Farmer, expressed optimism about the merger. He highlighted the benefits of joining forces with Fifth Third’s strengths in retail, payments, and digital operations. Farmer stated, “Joining with Fifth Third allows us to build on our leading commercial franchise and further serve our customers with enhanced capabilities across more markets.”

Industry Reactions and Future Prospects

The SPDR S&P Regional Banking ETF (KRE) experienced a 1% rise in early trading, fueled by expectations of further consolidation in the regional banking space. This anticipation is partly due to eased regulations and takeover scrutiny under the current administrative policies. The merger could potentially set the stage for more such deals in the banking sector.

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