In: Finance
find an article about a merger or acquisition that was announced within the last month. you should include a brief summary of the deal, along with your thoughts on the deal. To help you get started, here are some issues to consider:
Is this a good deal (i.e., is this deal likely to create value for the acquiring firm)?
What synergies does the deal create? Are these synergies realizable?
What is the catalyst for the deal? Why is the deal happening now?
minimum 300 words
Memphis-based First Horizon National Corp. announced the approval Friday, April 24. The companies anticipate the merger — which was first announced in November 2019 — to close the second quarter of 2020. Once completed, the company is expected to be one of the top 25 banks in the U.S. based on deposits.
“We are pleased that our shareholders strongly support our plan to merge our two complementary franchises,” said Bryan Jordan, chairman and CEO of First Horizon, in a release. “As a combined company, we will have an expansive 11-state reach in high-growth, attractive markets across our combined footprint. When we complete the integration of our company in 2021, we will be better positioned to deliver the innovative products and technology our customers have come to expect from us. We are both community-focused, service organizations. Our teams look forward to using our combined resources to better serve our customers and support our communities.”
As part of the agreement, IberiaBank common stock holders will receive 4.584 shares of First Horizon common stock for each share of IberiaBank common stock.
Also as previously announced, the newly combined company will operate under the First Horizon brand with its headquarters in Memphis. The HQ for the regional banking business will be in New Orleans.
Morgan Stanley & Co. LLC is the financial advisor and Sullivan & Cromwell LLP is the legal counsel to First Horizon. Keefe, Bruyette & Woods and Goldman Sachs are the financial advisors and Simpson Thacher & Bartlett LLP is the legal counsel to IberiaBank.