Shares of the roughly $80 billion asset First Horizon (NYSE: FHN), based in Memphis, Tennessee, treaded nearly 40% down as of 10:14 a.m. ET today after it and Toronto-Dominion Bank (NYSE: TD) announced they had mutually agreed to terminate their merger deal.

TD, which is based in Canada but has a very large U.S. presence, first announced its plan to acquire First Horizon for $25 per share back in February 2022. Since then, however, regulators have really clamped down on large bank mergers and acquisitions since the Biden administration took over. Many have taken a very long time to obtain regulatory approval, which has forced some to abandon their previously announced deals.

In February of this year, TD and First Horizon announced that they would need to extend their merger agreement until May because they didn't believe they were going to be able to get the deal done in time. But following that, both banks disclosed they also didn't think they would be able to close the deal by May either.

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Source Fool.com