Cincinnati/Dallas, October 2025 — In one of the year’s largest banking mergers, Fifth Third Bancorp announced it will acquire Comerica Incorporated in an all-stock transaction valued at $10.9 billion. The deal, expected to close in early 2026 pending shareholder and regulatory approvals, will create the ninth-largest U.S. bank with combined assets of $288 billion.
Terms of the Deal
Under the agreement:
- Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share, equivalent to $82.88 per share based on Fifth Third’s October 3 closing price.
- This represents a 20% premium to Comerica’s 10-day volume-weighted average price.
- Upon completion, Fifth Third shareholders will own 73% of the combined company, while Comerica shareholders will hold 27%.
Strategic Rationale
The merger brings together two long-established banking franchises:
- Fifth Third, founded in 1858 in Cincinnati, with a strong retail and digital banking presence across 11 states.
- Comerica, founded in 1849 in Detroit and headquartered in Dallas since 2007, with a leading middle-market commercial banking franchise and operations in 15 states, Canada, and Mexico.
The combined bank will operate in 17 of the 20 fastest-growing U.S. markets, including the Southeast, Texas, Arizona, and California, while reinforcing its leadership in the Midwest.
Leadership and Integration
Tim Spence, Chairman, President, and CEO of Fifth Third, will lead the merged entity. Curt Farmer, Comerica’s Chairman and CEO, will serve as Vice Chair. The companies project $850 million in cost synergies, likely through branch consolidations and operational efficiencies, though specific job impacts have not yet been disclosed.
Market Impact
Analysts describe the deal as a strategic acceleration of Fifth Third’s growth plan, enhancing scale, profitability, and geographic reach. The merger also strengthens the bank’s commercial payments and wealth management divisions, each generating more than $1 billion in recurring annual revenue.
Shares of both banks rose following the announcement, reflecting investor confidence in the transaction’s potential to deliver peer-leading efficiency and returns.
Outlook
If approved, the merger will reshape the U.S. regional banking landscape, positioning Fifth Third as a top-three player in Texas markets by 2030 and significantly expanding its Sun Belt presence. The deal underscores a broader wave of banking consolidation, as lenders seek scale, digital capabilities, and diversified revenue streams in a competitive financial environment.
Fifth Third Bancorp Southfield Town Center, Southfield Picture by Dave Parker
Sources: CBS News [1]; Yahoo Finance [2]; Banking Dive [5]; Business Wire [6].
