Fifth Third (Nasdaq: FITB) will acquire Comerica (NYSE: CMA), according to a public statement. The deal will create the ninth-largest US bank, with approximately $288 billion in assets.
Shares of both banks moved higher in early market trading.
Fifth Third will pay approximately $10.9 billion in an all-stock transaction, representing around $82.88 per share as of Fifth Third’s closing stock price on October 3.
Tim Spence, Chairman, CEO, and President of Fifth Third Bank, called the acquisition a pivotal moment in the history of his bank, which leverages its strategy of expanding in high-growth markets while enhancing its commercial capabilities.
“Comerica’s strong middle market franchise and complementary footprint make this a natural fit. Together, we are creating a stronger, more diversified bank that is well-positioned to deliver value for our shareholders, customers, and communities – starting today, and over the long-term.”
Curt Farmer, Chairman, President, and CEO of Comerica, said the deal will bring strengths in retail, payments, and digital.
The merger of the two big banks comes at a time when most traditional banks are shuttering branches while investing in digital services. Fifth Third closed dozens of branches in 2024 and with the expectation of more closures in Michigan, Florida, and Ohio in 2025. Comerica has also closed branches as part of an “expense recalibration effort.”
Goldman Sachs is serving as the exclusive financial advisor to Fifth Third, and Sullivan & Cromwell is serving as the legal advisor.
