The firms said on Monday that TD Bank Group will buy First Horizon Corp in an all-cash deal valued at $13.4 billion to extend its footprint in the United States.
In the previous two years, there has been a steady stream of mergers and acquisitions among midsized lenders, as institutions seek larger scale to better compete against the largest US banks.
Columbia Banking System Inc announced in October that it will buy larger competitor Umpqua Holdings Corp in an all-stock deal worth $5.1 billion.
The $25 per share offer from Toronto Dominion represents a nearly 37% premium over First Horizon’s previous close. In premarket trading, First Horizon’s stock was up over 32%.
TD intends to spend $1.3 billion on merger and integration expenditures in the first two years after the deal closes.
Bryan Jordan, president and chief executive officer of First Horizon, will join TD as vice chair, TD Bank Group, after the merger closes, which is expected in the first quarter of TD’s fiscal year 2023.
