First Horizon shoots up 30% after being acquired by TD Bank Group

First Horizon Corp (NYSE: FHN) went up by 30% after it announced that it and TD Bank Group (NYSE: TD) had executed a definitive purchase agreement that states TD Bank Group will acquire it for $13.4 billion, or $25 per common share. 

Via this financially compelling deal, the bank group’s long-term growth strategy will be accelerated by acquiring a leading regional financial institution with an aligned risk-management and culture framework. 

Top management statements 

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TD’s Chief Executive Officer and Group President, Bharat Masrani said:

First Horizon is a great bank and a terrific strategic fit for TD. It provides TD with immediate presence and scale in highly attractive adjacent markets in the US with significant opportunity for future growth across the Southeast

Mr Masrani claimed that working side-by-side with First Horizon’s team will help them build on the success of the company’s strong franchise and provide the customer experiences that make them different from everyone else. 

Once the deal is done, First Horizon’s Chief Executive Officer and President, Bryan Jordan, will be a Vice-Chair in the TD Bank Group and report to Mr. Masrani. Mr. Jordan said:

We have built a very strong business at First Horizon, and by joining forces with TD, we will create extraordinary value for our key stakeholders with a shared customer-centric strategy, enhanced scale and a broader product set for our clients. This is a true growth story.

The First Horizon CEO claimed that they’ve long respected TD Bank Group as a leading entity in the United States banking scene and are very confident that the corporation’s growing and continued investments in their local markets will help boost their long history when it comes to supporting the community. 

A leading US bank 

Excluding merger agreements, TD Bank Group’s US franchise will become one of the leading US banks, with roughly $614 billion in company assets alongside a network of about 1,560 stores that’ll serve more than 10 million Americans across 22 states. TD will have roughly $1,841 billion in assets and more than 2,600 branches.