A man walks past the TD Bank in the Bay Street Financial District in Toronto on Friday, August 5, 2022. TD Bank Group has raised questions about the chances of it closing its proposed US$13.4-billion acquisition of First Horizon by looking to further extend the closing window. THE CANADIAN PRESS/Nathan Denette
TORONTO – TD Bank Group has raised questions about the chances of it closing its proposed US$13.4-billion acquisition of First Horizon as it looks to further extend the closing date of the deal.
First Horizon says in a regulatory filing that TD has informed the bank that it does not expect to close the deal by the current May 27 deadline and so is looking to extend.
Tennessee-based First Horizon says in its filing that TD cannot provide a new projected closing date, and there is no assurance that an extension will be agreed upon or that regulatory approval will be secured.
Barclays analyst John Aiken says in a note that while delays should not be a surprise, the timing of the disclosure just weeks after the two banks agreed on a three-month extension does increase the likelihood of the deal not being completed.
TD says it can’t comment because it’s in a quite period ahead of its earnings release Thursday but that it remains committed to the transaction.
BMO also faced delays in its US$16.3-billion acquisition of Bank of the West, but ultimately closed it Feb. 1, about three months later than it originally expected.
This report by The Canadian Press was first published March 1, 2023.
Companies in this story: (TSX:TD)
