First Horizon Corp. FHN and TD Bank Group TDCA:TD have mutually agreed to end their merger agreement, the companies announced Thursday morning. First Horizon shares were plummeting 45% in premarket trading after the announcement. “TD informed First Horizon that TD does not have a timetable for regulatory approvals to be obtained for reasons unrelated to First Horizon,” the companies said in a release. “Because there is uncertainty as to when and if these regulatory approvals can be obtained, the parties mutually agreed to terminate the merger agreement.” TD plans to make a $200 million cash payment to First Horizon in accordance with their termination agreement. That’s in addition to a $25 million fee reimbursement related to the merger agreement. “While today’s announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability,” First Horizon Chief Executive Bryan Jordan said in a release. TD Bank Chief Executive Bharat Masrani said that the announcement “provides our colleagues and shareholders with clarity” and that TD Bank would “move forward with a strong, growing franchise in the United States” though he was “disappointed” with the resolution. The $13.4 billion planned deal was originally announced in February 2022.
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