X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHERRY HILL, NJ-With 460 branches and $47 billion in assets, Commerce Bancorp is New Jersey’s largest home-based bank. Now, it’s going to become part of Toronto-based TD Bank’s growing financial empire. The two companies have signed a definitive agreement for the latter to acquire the former in a 75% stock and 25% cash deal valued at $8.5 billion.

“Acquiring Commerce Bank offers a unique and compelling opportunity for our shareholders,” says TD Bank president and CEO Ed Clark in a statement. “The combination of Commerce and TD Banknorth doubles the scale of our US banking business and accelerates our transformation to a leading…financial institution.”

“Our joining forces with TD Bank…opens the door to tremendous new growth opportunities,” says Dennis DiFlorio, Commerce’s chairman, in a statement.

Commerce Bank was founded with a single branch in 1973 by Vernon Hill, and still had just 18 branches in 1988. With unusual hours, décor and services, Hill brought a retail aura to the banking world–the company internally commonly refers to its branches as “stores.” Hill departed Commerce earlier this year after federal regulators forced the company to stop doing business with companies controlled by members of his family.

The takeover by TD, pending approval by shareholders and US and Canadian bank regulators, is expected to close in the spring. Under the agreement, Commerce shareholders will get 0.41 shares of a TD common share and $10.50 in cash in exchange for each common share of Commerce Bancorp. The consideration was negotiated on the basis of $42.00 per share value for Commerce Bank, based on the Oct. 1 closing price of TD common shares of $42.37.

Once the deal closes, TD expects to take a one-time restructuring charge of $490 million pre-tax. Also as part of the deal, Commerce has agreed to sell its Commerce Banc Insurance Services Inc. Finally, DiFlorio as chairman and Bob Falese as president and CEO will remain in those positions to run Commerce, based at its current headquarters here.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.