Another bank tried to buy Comerica before Fifth Third deal
A recent regulatory filing released Wednesday revealed new insights into how the major merger between Comerica and Fifth Third Bancorp developed, along with details about compensation for Comerica CEO Curtis Farmer, who is set to become vice chair at Fifth Third.
Emergence of a preferred buyer
Once Comerica decided to sell itself, the Dallas-based company evaluated potential buyers. Although another bank presented an offer in September, Comerica’s board ultimately determined that Fifth Third Bancorp was the most suitable partner.
According to a public filing, the board considered Fifth Third to be "the optimal merger counterparty."
The resulting agreement, valued at nearly $11 billion, stands as the largest announced bank acquisition of the year.
How the merger began
The idea of the merger originated from a phone conversation. On September 18, Comerica CEO Curt Farmer contacted Fifth Third CEO Tim Spence to express interest in selling the bank and to explore whether the Cincinnati-based lender would consider a deal. Spence visited Dallas the next day.
This call occurred just over a week after their previous conversation, when Farmer had called to congratulate Spence on securing a government prepaid debit card contract previously held by Comerica.
Negotiations and finalization
Negotiations continued for roughly two and a half weeks. The two banks finalized the agreement on October 5 and publicly announced it the following day.
Key facts
- The merger is worth nearly $11 billion.
- It marks the largest bank acquisition announced this year.
- Curtis Farmer will serve as Fifth Third vice chair post-merger.
- Negotiations occurred between mid-September and early October.
Author’s summary: The Comerica–Fifth Third merger, valued at about $11 billion, unfolded from a September phone call between the two CEOs and culminated in one of the year’s largest bank deals.