TD Bank, First Horizon call off merger amid obstacles

TD Bank and First Horizon Corp. have called off a planned merger, with Cherry Hill-based TD citing uncertainty about regulatory approvals.

The two financial firms said in a news release that they have mutually agreed to terminate the merger, which was originally announced in February 2022. The deal had been valued in excess of $13 billion.

TD said it informed First Horizon that it does not have a timetable for regulatory approvals to be obtained for reasons unrelated to the Memphis, Tennessee-based financial services firm, parent of First Horizon Bank.

Under the terms of the termination agreement, TD will pay $200 million in cash to First Horizon, in addition to a $25 million fee reimbursement. Shares of preferred stock that TD purchased with continue to reflect a conversion price of $25 a share.

“This decision provides our colleagues and shareholders with clarity,” Bharat Masrani, group CEO and president, TD Bank Group, said in a prepared statement. “Though disappointed with the outcome, we move forward with a strong, growing franchise in the United States, servicing more than 10 million customers across our footprint.

“I want to thank First Horizon for their partnership over the last several months, and wish them enormous success for the future. Above all, I want to thank our colleagues at TD Bank, ‘America’s Most Convenient Bank,’ for their tremendous efforts and steadfast dedication to the bank, the millions we serve and the communities in which we live and work.”