Fifth Third to acquire Comerica for $10.9 billion

Cincinnati-based Fifth Third Bancorp is expanding in the regional bank space by acquiring Dallas-based Comerica in a nearly $11 billion, all-stock deal. .The transaction is expected to close by the end of the first quarter of 2026. After the deal, Fifth Third Bancorp is expected to become the country’s ninth-largest bank in the country with $288 billion in assets. The merger expands Fifth Third’s footprint in Texas and California, with the combined bank operating in 17 of the 20 fastest-growing U.S. markets. More than half of Fifth Third branches are expected to be in the Southeast, Texas, Arizona, and California by 2030.The combined company will feature two $1 billion recurring fee businesses — commercial payments and wealth and asset management. Leadership of the new bank will include representation from both organizations: Comerica Chair, President and CEO Curt Farmer will serve as vice chair, and Comerica’s chief banking officer, Peter Sefzik, will lead Fifth Third’s wealth and asset management division. Three Comerica directors will join Fifth Third’s Board after the merger, and Farmer will also join once he retires.“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,” said Fifth Third Bank Chair, CEO and President Tim Spence.“Joining with Fifth Third allows us to build on our leading commercial franchise and further serve our customers with enhanced capabilities across more markets, while staying true to our core values.”The deal was announced after Comerica activist investor HoldCo Asset Management pressured the company to sell this summer due to Comerica’s relatively lackluster stock performance and substandard strategic decisions. New York City-based financial firms Goldman Sachs & Co. LLC and Sullivan & Cromwell LLP advised Fifth Third, while New York City-based J.P. Morgan Securities LLC, Wachtell, Lipton, Rosen & Katz and Keefe, Bruyette & Woods advised Comerica.