TD commits to divesting some branches in Florida

The U.S. Federal Reserve Board has approved TD Bank’s proposed acquisition of The South Financial Group, Inc., the Fed announced Thursday.

Following the deal, TD’s U.S. subsidiary would become the 17th largest depository organization in the United States, with total consolidated assets of approximately US$167 billion, and it would control deposits of approximately US$134.7 billion. In Florida, it would become the 11th largest depository organization, controlling deposits of approximately US$7.4 billion.

In one Florida market where the two firms compete directly, the combined banks would have a pro forma market share of deposits of about 47%, the Fed said. However, to assuage competition concerns, TD has committed to divesting certain branches, which would bring their combined share to about 38.9% of market deposits.

Additionally, the Fed says that the U.S. Department of Justice has conducted a detailed review of the potential competitive effects of the proposed deal, and concluded that it would not likely have a significantly adverse effect on competition.

Other banking agencies did not object to the competitive effects of the proposal.

The Fed also reviewed TD’s capital position, managerial resources, and other factors, in approving the deal.

IE