First Horizon-td Bank merger hits setback, threatening May 27 closing
First Horizon’s $13.4 billion merger with Toronto-dominion Bank remains in limbo after another potential setback in the deal.
Three weeks after both parties agreed to extend the outside date for closing a deal from Feb. 27 to May 27, TD recently informed First Horizon it does not expect that the necessary regulatory approvals will be received in time to complete the merger. TD can also not project a new closing date at this time.
This is according to information filed by First Horizon in an annual report to the U.S. Securities and Exchange Commission on Wednesday.
The news comes after TD Bank recently announced a five-year, $50 billion Community Benefits Plan agreement developed in coordination with the National Community Reinvestment Coalition to benefit areas across TD Bank’s expanded presence once the merger is complete. It was seen as one of the last hurdles toward closing a deal.
Here’s what to know about where the proposed merger stands.
What is the latest on the potential TD Bank-first Horizon merger?
TD has initiated discussions with
First Horizon regarding another further extension of the outside date, according to the SEC filing.
“There can be no assurance that an extension will ultimately be agreed or that TD will satisfy all regulatory requirements so that the regulatory approvals required to complete the Pending TD Merger will be received,” the filing states.
What to know about the proposed TD Bank-first Horizon merger
TD announced the $13.4 billion allcash agreement in February 2022, First Horizon shareholders voted to approve the agreement in May. TD initially had hoped to close the deal by the end of the company’s first half of the year by April 30.
Once an agreement is finalized, TD’S U.S. franchise, based in Cherry Hill, New Jersey, will become a top-six U.S. bank and significantly expand its Southeast presence. TD plans to make Memphis a “regional” hub once the merger is complete.
Omer Yusuf covers the Ford project in Haywood County, residential real estate, tourism, and banking for The Commercial Appeal. He can be reached via email Omer.yusuf@commercialappeal.com or followed on Twitter @Omerayusuf.