Canadian banking group TD Bank has signed a definitive agreement to buy First Horizon in an all-cash deal worth $13.4bn.
Tennessee, Memphis-headquartered First Horizon had $89bn in assets as of 31 December 2021. It caters to 1.1 million consumers, business and commercial clients in 12 states of the US through a network of 412 branches.
TD Bank will leverage First Horizon’s regional presence to support its growth strategy in the US.
The deal will make TD’s US arm a top-six bank in the country with $614bn in assets, 1,560 stores and over 10.7 million customers.
TD Group president and CEO Bharat Masrani said: “First Horizon is a great bank and a terrific strategic fit for TD. It provides TD with an immediate presence and scale in highly attractive adjacent markets in the US with significant opportunity for future growth across the Southeast.
“Working with the First Horizon team, TD will build upon the success of its strong franchise and deliver the legendary customer experiences that differentiate us in every market across our footprint.”
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First Horizon president and CEO Bryan Jordan said: “We have built a very strong business at First Horizon, and by joining forces with TD, we will create extraordinary value for our key stakeholders with a shared customer-centric strategy, enhanced scale and a broader product set for our clients.”
Jordan will join TD as vice-chair and hold other key positions in the group.
TD Bank president, CEO and group head of US retail business Leo Salom will lead the combined businesses.
Salom said: “The Southeastern US represents a tremendous opportunity for TD and the addition of First Horizon’s commercial and speciality banking capabilities will position us as a leading national player in commercial banking. We will combine our resources and capabilities and continue to invest in the region as we focus on delivering the most differentiated banking experience in our markets.”
The deal is subject to customary closing conditions and is expected to close in the first quarter of TD’s 2023 fiscal year.