Toronto-Dominion Bank agreed to buy First Horizon Corp. for US$13.4 billion, putting its massive capital stockpile to use for its largest deal ever and expanding its presence in the U.S. Southeast.
The Canadian bank will pay US$25 a share in cash for Memphis, Tennessee-based First Horizon, according to a statement Monday. The purchase price is about 37 per cent higher than First Horizon’s closing price Friday.
The deal helps Toronto-Dominion put to work a large stockpile of capital that it had built up after Canadian regulators prevented the nation’s banks from buying back stock or boosting dividends during the early portion of the pandemic. The lender had about $21.6 billion in excess Common Equity Tier 1 capital at the end of its fiscal fourth quarter.
Read more: BNN Bloomberg
