First Horizon Bank, which acquired IberiaBank in 2020, announced Thursday morning it mutually agreed with TD Bank Group to call off their $13.4 billion merger.
TD Bank informed First Horizon that it did not have a timetable for when regulatory approval could be obtained, for reasons unrelated to First Horizon, the two banks said in a statement.
“Because there is uncertainty as to when and if these regulatory approvals can be obtained, the parties mutually agreed to terminate the merger agreement,” the banks said in a statement.
Toronto-based TD Bank announced in February 2022 it would acquire First Horizon in an all-cash deal, its biggest transaction ever, hoping to broaden its footprint in the southeastern U.S.
The deal would have created one of the top six banks in the U.S., the companies said, with approximately $614 billion in assets and a network of 1,560 locations serving over 10.7 million U.S. customers across 22 states.
The acquisition was announced shortly after Memphis-based First Horizon had finished its rebrand of IberiaBank. When First Horizon completed its takeover of IberiaBank in July 2020, the Lafayette-headquartered lender was the largest bank based in the state and the fourth-largest by number of Louisiana branches, with 64 locations.
TD Bank will make a $200 million cash payment to First Horizon under the terms of the termination agreement. An additional $25 million fee reimbursement is due to First Horizon pursuant to the merger agreement.
As of mid-morning Thursday, shares of First Horizon had tumbled more than 36%, or over $5.50.
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