(Reuters) -TD Bank Group will buy First Horizon Corp in an all-cash deal valued at $13.4 billion, the companies said on Monday, to expand its footprint in the United States.
There has been a steady stream of tie-ups among midsized lenders in the last two years, as institutions seek increased scale to better compete against the largest U.S. banks.
In October, Columbia Banking System Inc said it would acquire larger rival Umpqua Holdings Corp in an all-stock deal worth $5.1 billion.
Toronto Dominion’s offer of $25 per share represents a premium of nearly 37% to First Horizon’s last close. Shares of First Horizon were up nearly 32% in premarket trading.
TD said it expects to incur total merger and integration costs of $1.3 billion primarily in the first two years following close.
After the deal closes, expected towards in the first quarter of TD’s 2023 fiscal year, Bryan Jordan, president and chief executive officer of First Horizon, will join TD as vice chair, TD Bank Group.
(Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Sriraj Kalluvila)
