In a critical step, shareholders approve $13.4 billion acquisition of First Horizon




  • In Business
  • 2022-06-02 02:00:25Z
  • By Knox News | The Knoxville News-Sentinel

Toronto-Dominion has achieved a critical step toward finalizing its proposed $13.4 billion acquisition of Tennessee-based First Horizon.

If it meets all remaining closing conditions and U.S. and Canadian regulatory hurdles, the acquisition is expected to be finalized around November and would make TD Bank one of the six largest in the U.S.

As TD's U.S. franchise expands its Southeastern footprint with this acquisition, Tennessee will play a critical role.

First Horizon is headquartered in Memphis, and Knoxville is a significant regional hub.

First Horizon
First Horizon's Knoxville-area headquarters can be found in downtown Knoxville at 800 S.  

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In the Knoxville area, First Horizon has 25 branches and almost 600 employees. It holds $4.114 billion in local deposits in the Knoxville metropolitan area and has a 17.29% market share, according to a June 2021 FDIC report.

First Horizon shareholders voted in favor of acquisition at a special meeting Tuesday in Memphis.

"TD is committed to growing its presence and investments across the states in which First Horizon operates," the proxy statement reads. "Once the transaction is completed, Memphis will be an important regional hub for TD in the U.S. southeast, supporting clients and operations and contributing directly to the local economy."

TD Bank Group has committed to retaining First Horizon's customer-facing employees and has no planned closures for its 412 branches, according to past press releases.

Post-acquisition, TD would have U.S. assets of about $614 billion and 1,560 branches in 22 states.

A large crane outside First Horizon Plaza shuts down a block of Gay Street between Cumberland Avenue and Main Street in downtown Knoxville on Monday, Nov.
A large crane outside First Horizon Plaza shuts down a block of Gay Street between Cumberland Avenue and Main Street in downtown Knoxville on Monday, Nov.  

"Approval of the transaction demonstrates the confidence our shareholders have in the financial and strategic benefits of the transaction and the value it provides our associates, clients and communities," First Horizon President and CEO Bryan Jordan said in a statement. "Following the completion of the transaction, the combined organization will have immediate scale benefits and be well positioned to create extraordinary value with a shared customer-centric strategy and broader client capabilities."

TD Bank Group will pay $25 for each First Horizon share and expects to incur $1.3 billion in total merger, acquisition and integration costs in the first two years after the deal closes.

TD Bank Group announced the all-cash transaction in February. First Horizon has about 7,500 employees.

Omer Yusuf covers the Ford project in Haywood County, residential real estate, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.

This article originally appeared on Memphis Commercial Appeal: First Horizon shareholders approve Toronto-Dominion Bank merger

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