The merger between the Canadian corporation and the Tennessee banking company was first announced in February 2022.
KNOXVILLE, Tenn. — TD Bank Group of Toronto is calling off its planned merger with Tennessee-based First Horizon Corp.
Thursday’s announcement on the PRNewswire states the decision to end the proposed $13.4 billion merger was mutual.
Memphis-based First Horizon operates multiple banks in Tennessee, including its prominent location at 800 S. Gay St. in the tallest building in Knoxville.
The deal first was announced in February 2022.
As part of the termination agreement, TD is paying $200 million cash to First Horizon.
“While today’s announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability,” Bryan Jordan, First Horizon chairman, president and CEO, said in a statement.
“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.”
Thursday’s release also included a statement from Bharat Masrani, group president and CEO of TD Bank Group.
“This decision provides our 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.” Masrani’s prepared statement reads. “I want to thank First Horizon for their partnership over the last several months and wish them enormous success for the future. Above all, I want to thank our colleagues at TD Bank, America’s Most Convenient Bank, for their tremendous efforts and steadfast dedication to the Bank, the millions we serve and the communities in which we live and work.”
The merger was supposed to take place in February but was then delayed and put off to late May. At the time, Masrani blamed the delay on U.S. regulatory oversight.
Thursday’s release indicates conditions did not improve.
“TD informed First Horizon that TD does not have a timetable for regulatory approvals to be obtained for reasons unrelated to First Horizon. Because there is uncertainty as to when and if these regulatory approvals can be obtained, the parties mutually agreed to terminate the merger agreement.”
Source: wbir.com
