Stock Groups

TD to buy U.S. bank First Horizon in $13 billion deal -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : A Toronto Dominion bank logo can be seen on a Toronto (Ontario) building March 16, 2017. REUTERS/Chris Helgren/

(Reuters) -First Horizon Corp, a subsidiary of TD Bank Group, will be acquired by First Horizon Corp in an all-cash transaction valued at $13.4 million, according to the two companies. The acquisition is part of TD Bank Group’s plan to grow its American footprint.

In the past two years there has been an increase in tie-ups between mid-sized lenders as these institutions strive to compete with the larger U.S. banks.

This October: Columbia Banking System (NASDAQ 🙂 Inc stated it would buy Umpqua Holdings Corp (NASDAQ 🙂 Corp for $5.1 billion in an all-stock transaction.

Toronto Dominion’s $25 share offer represents an almost 37% premium to First Horizon’s closing price. In premarket trading, First Horizon’s shares were almost up 32%

TD stated that it anticipates total merger and integration cost of $1.3B in the two-year period following its close.

Bryan Jordan, the president and chief executive of First Horizon will be joining TD Bank Group as vice-chair after the deal is closed. This should occur in the first quarter 2023 of TD Bank Group’s fiscal year.

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