Toronto-based Toronto Dominion Bank (TD) announced Monday that it will be expanding to the Southeastern United States in an all-cash acquisition of First Horizon for $13.4 billion.
This will be the largest acquisition that TD has ever done and is part of the bank’s long-term plan of expansion. TD’s chief executive, Bharat Masrani, stated that “We have been talking about expanding in the Southeast [U.S.] for years, we are a patient bank.”
TD will pay $25 a share for First Horizon which is a 37% premium over First Horizon’s share price at Friday’s market closure. TD has also stated that the acquisition is estimated to provide a return in investment capital of 10% of 2023. TD has also stated that this deal will allow for the bank to become the sixth-largest within the U.S. with assets and business in 22 states.
Since 2014 when Masrani took over as CEO of TD, he has explained that one of his main goals would be furthering expansion throughout the U.S. and his deal will add 412 locations putting the bank’s total location count within the U.S. to a total of 1,140.
The deal is expected to become finalized in January of 2023.
Source: Bloomberg
