The bank said Thursday it had reached a mutual agreement with the
"This decision provides our colleagues and shareholders with clarity," said TD chief executive
"Though disappointed with the outcome, we move forward with a strong, growing franchise in
TD had said earlier this year that it did not expect to receive regulatory approval for the
The cancellation of the deal comes amid upheaval in the
The strain on the banking sector has put pressure on the value of many mid-sized banks, leading to calls from some for TD to walk away or renegotiate the terms of the deal it first announced in
The two banks did not, however, talk of changing the deal, said
"At no time did we discuss any changes in price, or any other changes to the structure of the deal," said Jordan.
He said the regulatory uncertainty was not related in any way to
The collapse of the deal, rather than a renegotiation, was somewhat unexpected, said Barclays analyst
"We are surprised that the parties could not come to an agreed upon lower price and believe that there could be broader repercussions from walking away from the deal."
TD might find future potential partners less willing to sit across the table, he said, while the end of the deal also raises questions about how the bank is going to put its excess capital to use.
Under the terms of the agreement, TD will pay
At TD's shareholder meeting in April, Masrani said he still saw the benefits of the deal, but notably absent were his comments from March that the bank remained "fully committed to the transaction."
The end of the deal comes as
"The Biden administration appears to be particularly concerned about the potential impact on local communities, including branch closures that could inconvenience customers," said Shanahan in a note.
He said this administration has also been more focused on how mergers affect the ability of banking customers to access credit, particularly among traditionally underserved communities.
TD faced criticism at a public meeting about the merger last year for what some called a poor track record of serving Black and Latino clients, though the bank noted several recent initiatives to increase lending to communities of colour.
The bank also faced criticism during the review for past actions around fees after it reached a
In announcing the end of the deal, TD did not provide any details about what might be causing the regulatory delays.
This report by The Canadian Press was first published
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