TD Bank in Toronto and First Horizon in Memphis, Tenn., are skeptical that they can complete their merger by the May 27 deadline – meaning another extension is likely.
The $79 billion-asset First Horizon disclosed in a regulatory filing that TD Bank recently sent notice that it doesn’t expect to secure regulatory approvals in time. TD Bank was also unable to provide a new projected closing date.
TD Bank “has initiated discussions … regarding a potential further extension of the outside date,” the filing said. “There can be no assurance that an extension will ultimately be agreed or that TD [Bank] will satisfy all regulatory requirements” needed to secure approvals.
The companies have already pushed the closing date back, including a decision to move the date from Feb. 27 to May 27. TD Bank had expressed hopes that it could complete the deal in late April.
TD Bank agreed to buy First Horizon in February 2022 for $13.4 billion. At that time, the companies projected closing the deal in the fall of 2022. The payout to First Horizon shareholders rose in November 2022 due to a stipulation in the merger agreement.