In the brash move that is shaking up the regional bank scene in America, Fifth Third Bancorp agreed to an all-stock acquisition of Comerica valued at $10.9 billion. Scheduled in the early quarter of 2026, the merger will bring these two entities together and form one of the top 10 banks by asset value in the country.
Comerica shareholders will get 1.8663 Fifth Third Bank shares for each share they own under the deal. The figure translates to a price of roughly 20% premium over Comerica’s 10-day volume-weighted average, or $82.88 per share. Post merger, Comerica shareholders will remain with 27%; Third investors will hold almost 73%.
The merger dramatically increases Fifth Third’s footprint, as this presence in Texas, California, Arizona, and the Sun Belt would be added by Comerica to Fifth Third’s strengths that lie in the Midwest and Southeast.
Leadership Positioning entails Comerica’s CEO, Curt Farmer
The Fifth Third Bank is envisaging $850 million in annual cost synergies, with estimated gross before-tax synergies being in excess of $5 billion, excluding restructuring expenses. Due to the comparatively low-profitability figures for Comerica, market commentators regard the purchase price as near to 1.75× tangible book value as fairly low compared to recent large acquisitions in banking.
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The response in the markets was swift and was very good for Comerica with Comerica stocks soaring, while Fifth Third Bank
This merger has come to be seen as the borderline case of a larger wave of consolidation among regional banks searching for size and diversification in an uncertain legal and competitive environment. With about $288 billion in assets combined, the new entity will compete in over 17 of the 20 fastest U.S. growth markets, subject to approval by shareholders and regulators.
This information is based on Fifth Third Bank buys Comerica
