Toronto-Dominion Bank, First Horizon Terminate Merger Agreement

By Adriano Marchese

Toronto-Dominion Bank and Tennessee-based First Horizon have decided to end their $13.4 billion merger agreement.

In a joint statement on Thursday, the companies said the decision was made after TD Bank considered that obtaining the regulatory prerequisites to push the merger through wasn't certain nor guaranteed.

Shares of First Horizon dropped in premarket trading in New York, falling nearly 40% from its closing price of $15.05 on Wednesday.

Under the terms of the agreement, Canadian financial institution TD Bank will make a $200 million cash payment to First Horizon on top of the $25 million fee reimbursement that is owed to First Horizon.

The companies said the First Horizon series G preferred stock that TD Bank already owns will continue to reflect a version price of $25 a share.

The deal was first announced at the end of February of last year and has since been met with regulatory hurdles.

More recently, the collapse of three U.S. regional banks has put investors on edge regarding the banking system, adding to scrutiny of the deal, especially for TD Bank, a Canadian bank with a large U.S. footprint.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

May 04, 2023 06:43 ET (10:43 GMT)

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