TD Bank Buys Commerce Bancorp in $8.5 billion Deal

http://www.insidearm.com/news/00006070-td-bank-buys-commerce-bancorp-in-85-billi/

Canada’s TD Bank Financial Group (NYSE: TD) announced today it would pay $8.5 billion in cash and stock for Commerce Bancorp Inc., the $48 billion-asset bank with about 460 branches in the Northeast and Florida.

The deal will roughly double the number of U.S. branches operated by TD Bank, according to a statement from CEO Ed Clark.

“Commerce gives us scale in the Mid-Atlantic and will allow us to turbo charge our organic growth strategy,” Bharat Masrani, TD Banknorth CEO, told the MarketWatch news service. TD Banknorth is the bank’s U.S. division.

Toronto-based TD Bank is one of Canada’s big five banks, with assets of $404 billion.

TD Bank also agreed to negotiate to sell Commerce’s insurance division to its founder George E. Norcross.

The deal is scheduled to close next spring pending regulatory approval.