CHERRY HILL, N.J., Oct. 2 (UPI) -- Canada’s Toronto-Dominion Bank said Tuesday it would buy New Jersey’s Commerce Bancorp Inc. for $8.5 billion in stock and cash.
The 75 percent stock, 25 percent cash deal for the Cherry Hill, N.J., bank doubles Toronto-Dominion’s U.S. banking business “and accelerates our transformation to a leading North American financial institution,” President and Chief Executive Officer Ed Clark said.
“Commerce brings an impressive geographic footprint and market share in a contiguous region and a complementary North American retail banking business model,” he said.
Commerce Bank has about 450 branches, mostly in Mid-Atlantic and Northeast states, giving Toronto-Dominion more than 2,000 branches in North America and approximately $250 billion in deposits, the bank said.
The bank, which operates under the TD Bank Financial Group corporate brand, will become the seventh largest bank in North America as measured by branch locations, it said.
Under the agreement, expected to close in March or April, Commerce shareholders will receive 0.4142 share of Toronto-Dominion and $10.50 in cash for each Commerce share.
The deal values Commerce at $42 a share. Commerce shares closed at $39.74 Monday.
Toronto-Dominion already owns TD Banknorth, which has nearly 600 branches in eight Northeastern U.S. states.