Another Bank Tried to Buy Comerica Before Fifth Third Deal
A regulatory filing on Wednesday revealed new details about the formation of the megamerger between Comerica and Fifth Third Bancorp. It also disclosed the compensation plans for Comerica CEO Curtis Farmer, who will become vice chair at Fifth Third.
After deciding to sell, Comerica targeted Fifth Third Bancorp as its preferred buyer. Although another bank proposed a deal in September, Comerica's board chose Fifth Third as "the optimal merger counterparty," according to the public filing.
Megamerger Negotiations and Timeline
The two banks agreed to a nearly $11 billion deal, marking the largest bank acquisition announcement so far this year. The merger discussions began with a phone call on September 18, when Comerica CEO Curtis Farmer informed Fifth Third CEO Tim Spence about Comerica's intent to sell and explored interest in a deal.
“The optimal merger counterparty”
Spence visited Dallas the following day to continue talks. This September call happened shortly after Farmer had congratulated Spence on Fifth Third becoming the financial agent for a U.S. government prepaid debit card program, a contract previously held by Comerica.
After two and a half weeks of negotiations, the agreement was signed on October 5 and publicly announced on October 6.
“The two banks eventually hatched a deal worth nearly $11 billion.”
Leadership Roles Post-Merger
- Curtis Farmer, Comerica CEO, will become vice chair at Fifth Third.
Summary
The $11 billion Comerica-Fifth Third megamerger resulted from targeted negotiations, choosing Fifth Third as the preferred buyer after competing offers, and highlights strategic leadership adjustments post-merger.