More Hoboken bank mergers
TD Bank to Buy Commerce for $8.5 Billion
After 34 years as an independent bank, Commerce Bancorp Inc. (NYSE: CBH) today announced it will be bought by Toronto’s TD Bank Financial Group (TSX and NYSE: TD) in an $8.5 billion cash-and-stock deal.
The deal follows reports that Cherry Hill-based Commerce might be up for grabs following the resignation of its founder, president and chairman Vernon Hill II. A former real estate developer, Hill stepped down in the wake of federal investigations into cozy business deals—worth tens of millions of dollars—between the publicly held financial institution and companies that were controlled by Hill and his wife, Shirley.
The acquisition of Commerce will double TD Banknorth’s U.S. operations, according to Ed Clark, president and chief executive officer of the Canadian bank. He says the transaction—which is expected to close by April 2008 subject to approvals from Commerce shareholders and U.S. and Canadian regulatory authorities—will give TD Bank Financial Group more than 2,000 branches in North America and about $250 billion of deposits.
The agreement will give Commerce shareholders 0.4142 shares of a TD common share and $10.50 in cash in exchange for each common share of Commerce Bancorp Inc. TD Bank Financial Group expects to take a one-time restructuring charge of approximately $490 million.