TD Bank of Canada has canceled its proposed acquisition of First Horizon, a US bank, citing regulatory concerns regarding the £13.4 billion transaction as the reason.
Following the announcement of the failed transaction on Thursday, First Horizon’s shares dropped by 33.2%, bringing their year-to-date decline to 58.9%. The deal was initially announced in February 2022, but US regulators repeatedly postponed it out of concern that TD might gain too much sway in the US market. The merger would have elevated TD to the sixth-largest lender in the US.
The announcement coincides with a turbulent week for US regional banks, many of which have seen significant drops in stock value as a result of the wider effects of the failure of Silicon Valley Bank (SVB).