“Fifth Third and Comerica $10.9B Merger 2025: Biggest U.S. Banking Deal & Growth Strategy”
Fifth Third and Comerica Announce $10.9 Billion Merger: A New Era in U.S. Banking
In October 2025, Fifth Third Bancorp unveiled plans to acquire Comerica Inc. in a $10.9 billion all-stock deal, marking a significant milestone in the U.S. banking sector. The merger aims to create one of the largest regional banks in the country, combining Fifth Third’s strong retail presence with Comerica’s robust middle-market banking capabilities.
Deal Overview
- Total Value: $10.9 billion in an all-stock transaction
- Share Exchange Ratio: Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share
- Ownership Structure: Post-merger, Fifth Third shareholders will hold approximately 73% of the combined company, and Comerica shareholders will hold 27%
- Premium: Comerica shareholders receive a 20% premium over the recent trading price
Strategic Objectives and Regional Expansion
The merger allows Fifth Third to strengthen its presence in high-growth regions, particularly in Texas, California, Arizona, and the Southeastern United States. By the end of 2025, more than half of Fifth Third’s branch network is expected to be concentrated in these regions.
The combination of Comerica’s strong middle-market lending operations with Fifth Third’s retail banking footprint will provide the merged bank with a more diversified portfolio and a stronger competitive position.
Leadership and Organizational Structure
Following the merger:
- Comerica CEO Curt Farmer will join the combined company as Vice Chairman
- Comerica’s Chief Banking Officer Peter Sefzik will lead Fifth Third’s Wealth & Asset Management division
- Three Comerica board members will be added to Fifth Third’s board
This structure ensures continuity in leadership while integrating the strengths of both banks.
Financial Benefits and Future Prospects
The merger is expected to generate significant financial synergies:
- Annual Cost Savings: Approximately $850 million
- After-Tax Adjusted Synergies: Over $5 billion
- Restructuring Costs: Estimated at $1.3 billion
Analysts predict that the merger will strengthen both banks’ long-term growth prospects, improve competitiveness, and create a more resilient banking model.
Timeline
Regulatory approvals and shareholder consent are expected to be obtained by the first quarter of 2026, paving the way for the completion of the merger.
Conclusion
The Fifth Third–Comerica merger represents a major development in the U.S. regional banking sector. By combining their complementary strengths, the merged entity will expand its footprint in high-growth regions, enhance service offerings, and improve overall competitiveness. This strategic alliance could serve as a model for future mergers among regional banks looking to compete with larger national players.
Fifth Third, Comerica, Merger, U.S. Banking, $10.9 Billion, 2025
