TD Bank scraps deal to buy U.S. bank First Horizon, will pay US$200M break fee

TD Bank Group has called off its US$13.4-billion takeover deal to acquire First Horizon Corp.

The bank says it reached a mutual agreement with the U.S. bank to terminate the acquisition because of the uncertainty as to when and if it would be able to obtain regulatory approval.

TD chief executive Bharat Masrani says this decision provides clarity for colleagues and shareholders.

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Though disappointed with the outcome, he says, TD moves forward with a strong and growing franchise in the United States.

Under the terms of the agreement, TD will pay First Horizon a US$200-million break fee.

The payment is in addition to a US$25-million fee reimbursement owed to First Horizon under the merger agreement.