Canada-based TD Bank called off the acquisition of First Horizon, one of the country's largest warehouse lenders.
The Memphis-based regional bank's shares plummeted 40% after the announcement.
A joint statement from both banks said they were calling off the acquisition due to uncertainty on when they would receive regulatory approval.
- Many commercial real estate experts have cautioned that the fall of regional banks could affect the sector and threaten financial stability.
- The acquisition, announced in February last year, was valued at $13.4B, making TD the sixth-largest bank in the U.S.
- TD will pay First Horizon $200M in cash and $25M as fee reimbursement as part of the termination agreement.
