TD Bank Group and Bank of Montreal have pushed back the projected closing dates for their purchase of U.S. banks.
TD said on Thursday that it expects to complete the acquisition of First Horizon in Memphis, Tenn., by April 30. The $13.4 billion deal was originally expected to close last fall.
The delay will trigger a financial incentive for First Horizon shareholders. First Horizon investors will receive an additional 65 cents a share, on an annualized basis, for the period from Nov. 27 through the day immediately prior to closing.
TD or First Horizon can terminate the deal if it fails to close by Feb. 27. The banks have the right to extend that deadline to May 27.
“We don’t control the timing of all the regulatory approvals, but we are confident that we’ll get closing within the timeline that we’ve put out,” TD CEO Bharat Masrani said during a recent conference call.
BMO, which recently announced a $40 billion community development plan, now expects to complete its pending purchase of Bank of the West in San Francisco in the first quarter. The original projection for closing the $16.3 billion acquisition was at the end of this year.
The deal is “rounding third base,” BMO CEO Darryl White said during a conference call.
“We’re saying first quarter of 2023,” White said. “Is it first fiscal quarter or first calendar quarter? We don’t know.”