- TD Bank (TD) and First Horizon (FHN) have called off their $13.4-billion deal
- The two banks terminated the deal over lack of clarity on if, and when, they would get regulatory approvals to close the deal
- Under the termination agreement, TD will make a $200 million cash payment to First Horizon and a $25 million reimbursement fee
- TD Bank Group (TD) opened trading at C$82.60 per share and First Horizon Corp. (FHN) opened trading at C$12.82 per share
TD Bank (TD) and First Horizon (FHN) have called off their $13.4-billion deal.
The two banks terminated the deal over lack of clarity on if, and when, they would get regulatory approvals to close the deal.
Under the termination agreement, TD will make a $200 million cash payment to First Horizon and a $25 million reimbursement fee.
First Horizon’s Chairman, President, and Chief Executive Officer Bryan Jordan called this announcement “unfortunate and unexpected” but added that his company would continue on its growth path operating from a position of strength and stability.
“Our strong capital position, disciplined credit quality, expense control measures, and well-diversified and stable funding mix have enabled our business to navigate challenging banking industry dynamics and remain focused on executing our client-centric growth plan. We continue to develop and expand deep client relationships across all of our markets, which include some of the fastest-growing U.S. markets, while maintaining a strong, asset-sensitive balance sheet well-positioned for the current rate environment.”
TD Bank Group’s President and Chief Executive Officer, Bharat Masrani added that this decision would provide their colleagues and shareholders with clarity.
“Though disappointed with the outcome, we move forward with a strong, growing franchise in the United States, servicing more than 10 million customers across our footprint.”
TD Bank Group (TD) is the fifth largest bank in North America by assets and serves over 27 million customers in four businesses.
First Horizon Corp. (FHN) is a regional financial services company Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S.
TD Bank Group (TD) opened trading at C$82.60 per share.
First Horizon Corp. (FHN) opened trading at C$12.82 per share.
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