Fifth Third Bancorp (NASDAQ:FITB) announced on Monday that it will acquire Comerica Inc (NYSE:CMA) in an all-stock transaction valued at $10.9 billion.
The combination of the two big regional banks will create the nineth largest US bank with about $288 billion in assets.
Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share held.
“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 Fifth Third Bancorp CEO Tim Spence said in a statement.
“Comerica’s strong middle market franchise and complementary footprint make this a natural fit.”
Fifth Third shareholders will own about 73% of the combined company, while Comerica shareholders will own around 27%.
The company noted that the business combination will operate in 17 of the 20 fastest-growing markets in US including key regions in the Southeast, Texas and California.
The transaction is expected to close at the end of the first quarter of 2026.
Comerica shares jumped more than 15% to $81.64 in late-morning trading Monday, while shares of Fifth Third Bancorp rose 0.3% to $44.53.