(Toronto) TD Bank Group announced Thursday the cancellation of its $13.4 billion tender offer to acquire First Horizon of the United States.

The Toronto-based institution explains that it has reached a mutual agreement with the American bank to end the acquisition due to uncertainty about the timing and the possibility of obtaining regulatory approvals.

TD Bank Group CEO Bharat Masrani says the move will end shareholder uncertainty. While disappointed with the conclusion of the process, Masrani said TD is moving forward with a strong and growing base in the United States.

The agreement provides that TD will pay First Horizon a severance payment of US$200 million. This payment is in addition to the $25 million fee reimbursement owed to First Horizon under the merger agreement.

Company quoted in this dispatch: TD Bank Group (TSX: TD)