NEW YORK (Agefi-Dow Jones)–First Horizon stock soared nearly 30% Monday in Wall Street trading after the U.S. bank reached an agreement to be bought out for $13.4 billion by its Canadian rival Dominion Bank, which is seeking to expand its presence in the United States.
The Canadian bank said it was offering a price of $25 in cash for each First Horizon share, a 37% premium to Friday’s closing price.
Around 5:30 p.m., First Horizon shares jumped nearly 30% to 23.73 dollars on the New York Stock Exchange. Dominion fell 1.6% on the Toronto Stock Exchange, posting a market capitalization close to 188 billion dollars.
The transaction is expected to close in the first quarter of TD Dominion’s 2022-2023 fiscal year, which ends in January.
TD Dominion said the takeover would allow it to enter new markets in the southeastern United States, including Texas, Tennessee and Louisiana, and become the country’s sixth-largest bank by assets. .
The Canadian bank will notably acquire 412 bank branches and nearly $89 billion in additional assets, bringing the size of its American banking network to 1,140 branches, she said.
This is the second major transaction carried out by a Canadian bank in the United States in recent months. In December, Bank of Montreal announced the acquisition of Bank of the West from BNP Paribas for nearly $16.3 billion.
-Vipal Monga and Adriano Marchese, The Wall Street Journal
(French version Jérôme Batteau) ed: ECH
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February 28, 2022 11:39 ET (16:39 GMT)