Fifth Third to Acquire Comerica in $10.9B Deal, Creating Ninth-Largest U.S. Bank
Fifth Third Bank has agreed to acquire Comerica in a deal worth approximately $10.9 billion, creating the ninth-largest bank in the U.S. The acquisition is expected to enhance Fifth Third's scale, profitability, and geographic reach, particularly in the Midwest. The news sent Comerica's stock up by 13%, while Fifth Third's stock slipped by 2.2%.
The deal, valued at around $10.9 billion, is set to boost Fifth Third's assets to $288 billion from $210 billion as of June 30, 2025. Analysts have mixed views on the acquisition. Evercore ISI's John Pancari sees strategic rationale and reasonable expense synergies, while CFRA analyst Alexander Yokum has concerns about operational challenges and integration issues. Meanwhile, regional banks are increasingly considering acquisitions to diversify revenue and expand into growing markets, following eased regulations under the Trump administration. Wells Fargo analyst Mike Mayo attributes the increased M&A activity in banks to this less restrictive regulatory approach, identifying potential takeover targets such as BankUnited, First Horizon, and Banc of California.
The acquisition is part of a broader trend of regional banks merging to gain strength and expand their reach. Smaller regional cooperative banks like Sparda-Bank Baden-Württemberg have also shown openness to mergers and consolidation. The KBW Nasdaq Regional Banking Index rose 1.0% in Monday late afternoon trading, reflecting the positive sentiment in the sector.
Fifth Third's acquisition of Comerica, valued at around $10.9 billion, is expected to create the ninth-largest U.S. bank. While analysts have differing views on the deal, it reflects a broader trend of regional banks merging to gain strength and expand their reach. The acquisition is anticipated to enhance Fifth Third's scale, profitability, and geographic reach, particularly in the Midwest.
