Fifth Third Bancorp is set to acquire Comerica in a $10.9bn all-stock deal, creating the ninth largest US bank with $288bn in assets. Comerica shareholders will receive 1.8663 Fifth Third shares per share, representing a 20% premium. The merger aims to enhance customer service and efficiency while strengthening market positions.

The post-merger entity will see Fifth Third shareholders owning 73% and Comerica shareholders having 27%. The deal is expected to be immediately accretive to shareholders, delivering efficiency and improved financial ratios. Fifth Third’s retail and digital strengths combined with Comerica’s market franchise aim to boost growth in key regions.

By 2030, over half of Fifth Third’s branches will be in high-growth markets like the Southeast, Texas, Arizona, and California. Two $1bn fee businesses in commercial payments and wealth management will result from the merger. Comerica’s banking officer will lead Fifth Third’s wealth management, with three Comerica board members joining Fifth Third’s board.

The merger is projected to be completed by the end of Q1 2026 pending shareholder and regulatory approvals. Fifth Third Bank’s CEO views the deal as a strategic move to expand into high-growth markets and strengthen commercial capabilities. The acquisition aligns with Fifth Third’s plan to open 200+ branches in the Southeast US by 2028, enhancing its market presence.

Read more at Yahoo Finance: Fifth Third Bancorp enters $10.9bn deal to acquire Comerica