TD Bank just made its biggest acquisition ever

Deal makes TD's US arm the sixth-largest US bank, with $614B in assets

TD Bank just made its biggest acquisition ever, despite the volatility rocking U.S. markets. 

The bank is paying $13.4 billion for Memphis-based First Horizon, in an all-cash deal valuing the shares at $25.00, to establish a presence in the Southeast.

First Horizon has leadership positions in Tennessee, Louisiana, Florida, the Carolinas and Virginia, and footholds in the attractive Atlanta, Georgia, and Dallas and Houston, Texas markets.

First Horizon shares soared on the deal. 

RUSSIA-UKRAINE: LIVE UPDATES

Ticker Security Last Change Change %
FHN FIRST HORIZON CORP. (TENNESSEE) 23.10 +0.01 +0.04%
TD THE TORONTO-DOMINION BANK 75.61 +0.98 +1.31%

"The Southeastern U.S. represents a tremendous opportunity for TD and the addition of First Horizon's commercial and specialty banking capabilities will position us as a leading national player in commercial banking. We will combine our resources and capabilities and continue to invest in the region as we focus on delivering the most differentiated banking experience in our markets" said Leo Salom, Group Head, U.S. Retail, TD Bank Group, and President and CEO, TD Bank in the deal announcement. 

Salom will lead the combined businesses. 

Ticker Security Last Change Change %
IAT ISHARES TRUST DOW JONES US REGIONAL BANKS 55.26 +0.79 +1.45%
KRE SPDR SERIES TRUST S&P REGIONAL BKG ETF 64.30 +0.99 +1.56%

The deal will make TD's U.S. arm the sixth-largest U.S. bank with $614 billion in assets and 1,550 branches across 22 states. 

TD's U.S. franchise1 will be a top 6 U.S. bank

Pending regulatory and shareholder approvals, the deal is expected to close in the first quarter of TD's 2023 fiscal year.