Toronto-Dominion Bank and First Horizon National Corporation (NYSE:FHN) announced on Thursday an agreement to terminate their previously announced $13.4 billion merger as uncertainty swirled around the possibility of regulatory approvals.
TD will pay Memphis-based First Horizon US$200 million in cash plus a $25 million reimbursement due as part of the merger agreement.
First Horizon shares sank more 40% in pre-market trading on Thursday following the announcement.
“While today’s announcement is unfortunate and unexpected, First Horizon will continue on its growth path,” First Horizon CEO Bryan Jordan in the statement.
TD informed First Horizon that it was unable to secure a “timetable for regulatory approvals to be obtained for reasons unrelated to First Horizon,” Canada’s second-largest bank stated.
The merger, which was first announced in early 2022, would have made TD the sixth-largest bank in the US by assets.
Even before the regional bank turmoil, US Senator Elizabeth Warren had criticized TD over its sales practices.
Shares of TD Bank rose nearly 2% in US pre-market trading Thursday.
Contact Sean at sean@proactiveinvestors.com