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TD Bank Group has signed a deal to buy U.S. bank First Horizon Corp. in an agreement valued at US$13.4 billion.

TD said Monday the deal accelerates its long-term growth strategy in the United States with the addition of a premier regional bank.

First Horizon, based in Memphis, Tenn., operates 412 branches and has more than 1.1 million consumer, business and commercial customers across 12 states.

TD CEO Bharat Masrani said First Horizon is a great bank and a terrific strategic fit.

“It provides TD with immediate presence and scale in highly attractive adjacent markets in the U.S. with significant opportunity for future growth across the Southeast,” Masrani said in a statement.

“Working with the First Horizon team, TD will build upon the success of its strong franchise and deliver the legendary customer experiences that differentiate us in every market across our footprint.”

Leo Salom, U.S. retail group head at TD Bank Group, will lead the combined businesses, while First Horizon CEO Bryan Jordan will join TD as a vice-chair at TD Bank Group, reporting to Masrani.

The acquisition builds on TD’s existing U.S. business, which is already one of the 10 largest banks in the U.S. with operations along the East Coast of the country.

With the deal, TD said its U.S. franchise will be a top six U.S. bank, with about US$614 billion in assets and a network of 1,560 locations with over 10.7 million U.S. customers across 22 states.

TD expects to achieve about US$610 million in pre-tax cost synergies through a combination of technology and systems consolidation and other changes.

It said merger and integration costs are expected to total US$1.3 billion, primarily in the first two years following the close of the deal.

The deal is expected to close in the first quarter of TD’s 2023 financial year and is subject to customary closing conditions, including approval by First Horizon shareholders and U.S. and Canadian regulatory authorities.

TD will report its financial results on Thursday.

Scotiabank increases stake in Chilean unit

Also on Monday, Bank of Nova Scotia said it reached an agreement to acquire Grupo Said’s remaining 16.8% stake in Scotiabank Chile, increasing its ownership to 99.8%.

The deal is valued at approximately $1.3 billion, with Scotiabank to pay half in cash and issue 7 million shares to Grupo Said. The transaction, which is subject to customary closing conditions and regulatory approvals, will add about $35 million per quarter to the bank’s earnings, a release said.

“Today’s announcement enables us to achieve even greater scale and deliver the highest value for customers, further strengthening our position as a leading bank in the Americas,” said Brian Porter, Scotiabank’s president and CEO, in the release.