Mergers &
Acquisitions
Banking Consolidation
Author: Ashrith Desu
This week highlights a landmark deal in U.S. banking as consolidation continues across the sector.
Fifth Third Bancorp Acquires Comerica for $10.9 Billion
Fifth Third Bancorp (NASDAQ: FITB) has agreed to acquire Comerica Inc. (NYSE: CMA) in an all-stock deal valued at approximately $10.9 billion, creating the nation’s 9th largest bank by assets. The merger will result in a combined entity with roughly $288 billion in total assets, strengthening Fifth Third’s position as it aims to compete with banking giants like JPMorgan Chase and Bank of America.
The acquisition reflects a growing wave of industry consolidation, as mid-tier lenders seek scale and operational efficiency amid a changing regulatory environment. RBC analyst Gerard Cassidy noted the transaction “could be a catalyst for more regional banks to come up for sale,” particularly at attractive valuations. Following the announcement, Comerica shares rose 14%, while Fifth Third dipped less than 1% amid investor scrutiny of Comerica’s cost structure and compliance challenges.
Comerica has faced headwinds from high compliance costs after nearing the $100 billion asset threshold and a failed technology upgrade. Fifth Third’s due diligence largely focused on addressing these issues to ensure smoother integration. Post-merger, Fifth Third shareholders will own approximately 73% of the combined company, with Comerica shareholders holding the remaining 27%.
Acquirer: Fifth Third Bancorp (Cincinnati, Ohio)
Target: Comerica Inc. (Dallas, Texas)
Deal Value: ~$10,900,000,000
Announcement Date: October 6th, 2025
Acquirer Advisors: Goldman Sachs (Financial) + Sullivan & Cromwell LLP (Legal)
Target Advisors: J.P. Morgan (Financial) + Wachtell, Lipton, Rosen & Katz (Legal)
Summary
- Creates the 9th largest U.S. bank with ~$288 billion in assets
- Signals growing momentum in mid-tier bank consolidation
- Addresses Comerica’s compliance and technology challenges
