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Fifth Third Bank to buy Comerica for $10.9 billion
Along Greenfield and 10 Mile is a snapshot of how competitive the banking industry can be. Two banks are directly across the street from each other, and in other cities and towns, it's even more saturated. Oakland University Associate Professor of Management Michael Greiner says the only way for these banks to ultimately survive is to merge with each other.
FOX 2 - Fifth Third Bancorp is buying Comerica for $10.9 billion in an all-stock deal, tying up two big regional banks.
Big picture view:
The buyout will create the 9th largest U.S. bank with approximately $288 billion in assets, the companies said Monday.
The combined company will have operations in the Southeast, Texas and California, and will greatly solidify Fifth Third’s position in the Midwest.
It is anticipated that over half of Fifth Third’s branches will be located in the Southeast, Texas, Arizona and California by 2030.
"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," Fifth Third Bank Chairman and CEO Tim Spence said in a statement. "Comerica’s strong middle market franchise and complementary footprint make this a natural fit."
Comerica’s stockholders will receive 1.8663 Fifth Third shares for each share they own. This representing $82.88 per share as of Fifth Third’s closing stock price on Friday.
Fifth Third shareholders will own about 73% of the combined company, while Comerica shareholders will own approximately 27%.
There has been some consolidation in the regional bank sector recently.
Three members of Comerica’s board will join the board of Fifth Third, based in Cincinnati, once the deal is complete. Chairman and CEO Curt Farmer of Comerica, based in Dallas, will serve as vice chair and Peter Sefzik, Comerica’s chief banking officer, will lead Fifth Third’s wealth and asset Management business.
The deal is expected to close at the end of the first quarter of 2026. It still needs the approval of both companies’ shareholders.
Shares of Comerica rose 11% before the opening bell Monday, while shares of Fifth Third sank 2%.
The Source: The Associated Press contributed to this report.