Canadian lender TD calls off $13.4 bln deal to buy First Horizon Bank

Canadian lender Toronto-Dominion Bank Group (TD.TO) has called off its deal to acquire First Horizon Corp (FHN.N) for $13.4 billion on Thursday, sending the U.S. bank’s shares down 44.5% in premarket trading.

TD and First Horizon mutually decided to end the deal because there was no clarity on when they would get regulatory approvals, the two banks said in a statement.

As part of the termination, TD will pay $200 million to First Horizon in addition to a $25 million fee reimbursement, the banks said.

The deal, which would have been TD’s biggest, had faced months of regulatory uncertainty and recently came under pressure from TD’s investors after the U.S. regional banking crisis.

The U.S. regional banking industry has been on shaky ground in the last two months, which saw three banks collapse after a flight of deposits spiraled out of control.

This report’s information was first seen on REUTERS; to read more, click this link.