Bulletin: Toronto-Dominion Bank's Termination Of First Horizon Acquisition Supports Strong Business Position

TORONTO (S&P Global Ratings) May 4, 2023--S&P Global Ratings today said that Toronto-Dominion Bank's (TD Bank; AA-/Stable/A-1+) termination of its proposed acquisition of First Horizon Corp. (BBB-/Watch Pos/--) supports our assessment of the bank's strong business position. On May 4, 2023, TD Bank announced that it and First Horizon mutually agreed to terminate the deal, based on regulatory uncertainty. Under the terms of the original agreement, TD Bank will pay a US$200 million break fee in cash, in addition to a US$25 million fee reimbursement to First Horizon. TD Bank originally agreed to buy First Horizon on Feb. 28, 2022. We view the termination as an incremental credit positive, because TD Bank was able to exit the deal at a

...May 4, 2023 TORONTO (S&P Global Ratings) May 4, 2023--S&P Global Ratings today said that Toronto-Dominion Bank's (TD Bank; ##-/Stable/A-1+) termination of its proposed acquisition of First Horizon Corp. (###-/Watch Pos/--) supports our assessment of the bank's strong business position. On May 4, 2023, TD Bank announced that it and First Horizon mutually agreed to terminate the deal, based on regulatory uncertainty. Under the terms of the original agreement, TD Bank will pay a US$200 million break fee in cash, in addition to a US$25 million fee reimbursement to First Horizon. TD Bank originally agreed to buy First Horizon on Feb. 28, 2022. We view the termination as an incremental credit positive, because TD Bank was able to exit the deal at a relatively low cost rather than overpay for an acquisition that was made before the U.S. regional bank disruptions. Although the acquisition would have yielded TD Bank some modest strategic benefits by further expanding its already significant retail...

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