Chief executive officer Bharat Masrani said that the bank will consider opportunities to add capabilities across the bank’s business segments, pointing to TD’s US$1.3-billion takeover of New York-based investment bank Cowen Inc., which closed in early March. TD executives would not comment on the reasons for the delayed regulatory approvals during the conference call. regulators that this deal could get approved before signing on the dotted line.” “And if you’re a potential seller, you’re going to require a lot of assurances from TD or even the U.S. “A bank deal would be hard to do, given that they just walked away from a bank deal,” Mr. TD is a lagging bank stock, and a rare opportunity In addition to hindering TD’s ability to do another major deal, the regulatory concerns could also deter a bank from brokering a deal with TD until the issues are resolved. Media reports citing unnamed sources said the regulators’ concerns stemmed from issues with TD’s anti-money-laundering practices. In early May, TD cancelled its US$13.4-billion acquisition of Tennessee-based First Horizon after challenges acquiring regulatory approvals delayed the deal’s closing timeline indefinitely. “But that doesn’t mean that TD can’t return to back to bank M&A after they resolve whatever issue forced them to walk away.” “It’s a bit of a set back and First Horizon would have accelerated their presence in the southeast market, and organically it might take five to seven years to achieve what they would have achieved on day one,” Mr. by opening new retail locations – a change in strategy that could stall its growth ambitions by several years, according to Bank of America analyst Ebrahim Poonawala.
TD said it did not have a timeline on when it would receive regulatory approvals and did not provide further details, leaving investors without clarity on the issues threatening to delay its growth trajectory.ĭuring a conference call with analysts last Thursday discussing its second-quarter financial results, TD declined to answer questions on whether it could strike another deal, but unveiled the initial stages of a plan to grow organically in the U.S. The derailed deal struck a blow to TD’s growth strategy, wiping out the opportunity to scoop up hundreds of retail branches and tens of billions of dollars in assets in the bank’s fastest growing market in the United States. bank while its regulatory issues remain unresolved.
created uncertainty about whether it can buy another U.S. expansion strategy to put more focus on internal growth after the cancelled takeover of First Horizon Corp. Toronto-Dominion Bank TD-T is shifting its U.S.
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