Toronto-Dominion has achieved a critical step toward finalizing its proposed $13.4 billion acquisition of Tennessee-based First Horizon.
If it meets all remaining closing conditions and U.S. and Canadian regulatory hurdles, the acquisition is expected to be finalized around November and would make TD Bank one of the six largest in the U.S.
First Horizon is headquartered in Memphis, and Knoxville is a significant regional hub.
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In the Knoxville area, First Horizon has 25 branches and almost 600 employees. It holds $4.114 billion in local deposits in the Knoxville metropolitan area and has a 17.29% market share, according to a June 2021 FDIC report.
First Horizon shareholders voted in favor of acquisition at a special meeting Tuesday in Memphis.
"TD is committed to growing its presence and investments across the states in which First Horizon operates," the proxy statement reads. "Once the transaction is completed, Memphis will be an important regional hub for TD in the U.S. southeast, supporting clients and operations and contributing directly to the local economy."
TD Bank Group has committed to retaining First Horizon's customer-facing employees and has no planned closures for its 412 branches, according to past press releases.
Post-acquisition, TD would have U.S. assets of about $614 billion and 1,560 branches in 22 states.
"Approval of the transaction demonstrates the confidence our shareholders have in the financial and strategic benefits of the transaction and the value it provides our associates, clients and communities," First Horizon President and CEO Bryan Jordan said in a statement. "Following the completion of the transaction, the combined organization will have immediate scale benefits and be well positioned to create extraordinary value with a shared customer-centric strategy and broader client capabilities."
TD Bank Group will pay $25 for each First Horizon share and expects to incur $1.3 billion in total merger, acquisition and integration costs in the first two years after the deal closes.
TD Bank Group announced the all-cash transaction in February. First Horizon has about 7,500 employees.
Omer Yusuf covers the Ford project in Haywood County, residential real estate, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.
This article originally appeared on Memphis Commercial Appeal: First Horizon shareholders approve Toronto-Dominion Bank merger