MEMPHIS, Tenn. — First Horizon and TD Bank “mutually agreed” to terminate their merger agreement, according to reports.
Thursday, the First Horizon Corporation released a statement saying TD Bank does not have a timetable for approvals. Because there is uncertainty about when and if the approvals can be obtained, both parties “mutually agreed to terminate the merger agreement.”
The press release stated, “TD will make a $200 million cash payment to First Horizon. This payment is in addition to the $25 million fee reimbursement due to First Horizon pursuant to the merger agreement.”
Shares of First Horizon plunged more than 42% before the opening bell Thursday, according to AP News.
In February 2022, a Toronto, Canada-based bank group said it would buy Memphis-based First Horizon. The company said the $13.4 billion all-cash deal would help broaden its reach in the southeastern U.S.
The companies said that the deal would create a combined business in the top six banks in the U.S., with approximately $614 billion in assets and a network of 1,560 stores, serving over 10.7 million U.S. customers across 22 states.
Last June, it was announced that three US lawmakers were looking to block the merger between the two banks. They argued that any merger should be blocked until the Canadian-based bank group is held responsible for those practices.