Comerica Incorporated (NYSE:CMA) shares are trading higher premarket on Monday after Fifth Third Bancorp (NASDAQ:FITB) agreed to merge with the company in an all-stock deal valued at $10.9 billion.
As per the terms, Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share.
The offer price is equivalent to $82.88 per share based on Fifth Third’s October 3, 2025, closing price and represents a 20% premium to Comerica’s 10-day volume-weighted average.
The combined entity will operate in 17 of the 20 fastest-growing U.S. markets, including major areas in the Southeast, Texas, and California, while reinforcing its leadership in the Midwest.
The transaction is expected to close by the end of the first quarter of 2026, pending approvals from shareholders of both companies, along with customary regulatory reviews and closing conditions.
Upon completion, Fifth Third investors will hold about 73% of the merged company, while Comerica shareholders will own roughly 27%.
The merger unites two long-established banking institutions, forming the ninth-largest bank in the U.S. with approximately $288 billion in assets.
The deal is expected to be immediately accretive for shareholders.
The merger will also create two $1 billion recurring, high-return fee segments, Commercial Payments and Wealth and Asset Management, providing diversified earnings and supporting continued reinvestment in growth initiatives.
Tim Spence, Chairman, CEO, and President of Fifth Third Bank, said, “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.”
As of June 30, Comerica’s cash and due from banks stood at $1.2 billion.
Investors can gain exposure to the stock via iShares U.S. Regional Banks ETF (NYSE:IAT).
Price Action: CMA shares were trading higher by 12.30% to $79.24 premarket at last check Monday.
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