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The deal, which was first announced in February last year, has faced months of regulatory uncertainty and recently came under pressure from TD’s investors after the U.S. regional banking crisis.
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.
The termination was solely related to TD, which was unable to get approvals, and it had nothing to do with the ongoing banking crisis or with First Horizon, a spokesperson for the U.S. bank said.
TD did not immediately respond to a request for comment.
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.
The latest to fall was First Republic Bank (NYSE:FRC), which was taken over by regulators who then sold its assets to JPMorgan Chase & Co (NYSE:JPM) earlier this week.
As part of the termination, TD will pay $200 million to First Horizon, the banks said.
