Toronto-Dominion Bank is shopping for regional financial institution First Horizon in a $13.4 billion all-cash deal, its largest ever, hoping to broaden its footprint in the southeastern U.S.
The deal would create one of many prime six banks in the U.S., the businesses stated Monday, with roughly $614 billion in belongings and a community of 1,560 areas serving over 10.7 million U.S. clients throughout 22 states.
TD Bank Group can pay $25 for every share of First Horizon Corp.
“The Southeastern U.S. represents an incredible alternative for TD and the addition of First Horizon’s industrial and specialty banking capabilities will place us as a number one nationwide participant in industrial banking,” stated TD CEO Leo Salom.
Along with its residence state of Tennessee, First Horizon operates in Louisiana, Florida, North Carolina, South Carolina and Virginia. It additionally has vital footholds in main southern city facilities like Atlanta, Dallas and Houston.
TD, based mostly in Toronto, stated it’s dedicated to sustaining First Horizon’s banking areas with no deliberate department closures.
TD anticipates $1.3 billion in merger and integration prices, principally in the primary two years after the transaction closes. It expects about $610 million in price financial savings.
The deal is focused to shut in the primary quarter of TD’s 2023 fiscal yr. It nonetheless wants approvals from First Horizon’s shareholders and U.S. and Canadian regulatory authorities. The transaction will finish, until in any other case prolonged, if it doesn’t shut by Feb. 27, 2023.
Shares of First Horizon soared greater than 30% Monday.