S&P Global, March 8, 2023, TD-First Horizon Back At Negotiating Table As Deal Hangs In Regulatory Purgatory
Toronto-Dominion Bank is unsure when it will close its acquisition of First Horizon Corp., leaving the companies negotiating again just weeks after extending their merger agreement.
At the beginning of February, TD and First Horizon agreed to extend the outside date of their merger agreement to May 27 from Feb. 27 for the deal that was originally announced over one year ago. But now, just three weeks after agreeing to the extension, the companies aren’t so confident about that May 27 outside date.
TD’s $50 billion community benefits agreement with National Community Reinvestment Coalition that was announced Feb. 15 could help to smooth the approval process. Though these type of agreements are not monitored or enforced by regulators, MacDonald anticipates that the OCC and Fed will review how the banks will implement this agreement, its cost and the impact on the banks.
Such agreements have become “commonplace” in the deal process, the Jefferies analysts wrote, as many other large deals have closed after reaching similar agreements.