Fifth Third to acquire Comerica, creating ninth-largest bank
Tim Spence, chairman, CEO and president of Fifth Third Bank, and Comerica Bank chairman, president and CEO Curt Farmer. Images courtesy of the banks.
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Two banks that might already be in your dealership network of auto-finance providers are coming together.
Fifth Third Bank and Comerica Bank announced on Monday morning that they have entered into a definitive merger agreement under which Fifth Third will acquire Comerica in an all-stock transaction valued at $10.9 billion.
According to a news release, this transaction brings together two banking franchises to create the ninth largest U.S. bank with approximately $288 billion in assets. At close, Fifth Third shareholders will own approximately 73% and Comerica shareholders will own approximately 27% of the combined company.
Executives highlighted the acquisition is a strategic acceleration of Fifth Third’s long-term growth plan, enhancing scale, profitability, and geographic reach.
The combination of Fifth Third’s retail banking and digital capabilities with Comerica’s strong middle market banking franchise and attractive footprint further strengthens Fifth Third’s position in high-growth markets. The combined entity will operate in 17 of the 20 fastest-growing markets in the country, including key regions in the Southeast, Texas and California, while solidifying its leadership in the Midwest.
By 2030, executive said it is expected that over half of Fifth Third’s branches will be located in the Southeast, Texas, Arizona and California.
“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 Tim Spence, chairman, CEO and president of Fifth Third Bank.
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“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,” Spence continued in the news release.
Comerica chairman, president and CEO Curt Farmer added, “Our unique approach to relationship banking has served our customers for nearly two centuries.
“Joining with Fifth Third — with its strengths in retail, payments and digital — 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. I am confident that we will be better together, and our customers, shareholders and communities will benefit,” Farmer went on to say in the news release.
