Canadian banking conglomerate Toronto-Dominion Bank (TD Bank) is to acquire First Horizon Bank as part of its US expansion strategy.
The deal will see TD Bank buy First Horizon in an all-in-one transaction worth between $ 13,000 and $ 4,400, or $ 25 per unit on First Horizon.
First Horizon will give TD Bank “rapid development and scale in the attractive markets facing the U.S. with significant potential for future growth across the east,” says Bharat Masrani, CEO of TD Bank.
First Horizon President and CEO Bryan Jordan will join TD Bank as Vice President.
The Canadian banking heavyweight has been in the United States since the mid-2000s through the TD Bank N.A. supports. The bank operates mostly across the East Coast, with headquarters in New Jersey.
Through extensive integration and acquisition, TD Bank NA.
Meanwhile, First Horizon is located in 12 U.S. locations in the Southeast, including Tennessee (HQ), Louisiana, Florida, South and South Carolina, Virginia, Georgia, and Texas. It has assets of $ 89 million, 412 affiliates, and 1.1 million customers and business customers.
Interestingly, the size of this U.S. region is expected to grow at a rate of 50% faster than the national average, “providing significant growth opportunities in the future as TD grows in the region,” the bank says.
The deal is expected to close in Q1 2023 and TD Bank is expected to generate $ 1.3 billion in the first two years due to mergers.
The joint venture will be the largest U.S. bank, with $ 64.4 billion in assets and a network of 1,500 stores, serving more than $ 17 million in 22 regions.