Acquisition strengthens and expands TD
Business Banking capabilities across Canada
TORONTO, Jan. 14, 2021 /CNW/ - The Toronto-Dominion
Bank ("TD") (TSX and NYSE: TD) and Wells Fargo & Company
("Wells Fargo") (NYSE: WFC) today announced a definitive agreement,
subject to certain closing conditions, for TD to acquire Wells
Fargo's Canadian Direct Equipment Finance business.
The acquisition of Wells Fargo's Canadian Direct Equipment
Finance business is expected to add scale and capabilities to TD's
existing Canadian Equipment Financing business and expand TD's
presence in core markets. Wells Fargo's Canadian Direct Equipment Finance's
direct origination model is expected to allow TD to better serve a
more diverse set of business customers in need of competitive
equipment loans, leases, and customized financing services.
"In today's challenging operating environment, businesses are
looking to their bankers to help keep their fleets current, deliver
new construction equipment to job sites, and support manufacturing
businesses with timely customized financing and leasing solutions
that help drive their competitiveness," says Darren Cooke, Vice President, TD Equipment
Finance, Canadian Business Banking, TD Bank Group. "We are excited
to welcome Wells Fargo's Canadian Direct Equipment Finance team of
highly skilled and experienced industry professionals to TD and
leverage their deep expertise in equipment leasing and finance for
the benefit of our highly-valued customers nationwide."
Headquartered in Mississauga,
with regional offices across the country, including Montreal and Calgary, Wells Fargo's Canadian Direct
Equipment Finance business has a 25-year operating history, which
includes the acquisition by Wells Fargo of GE Capital's Canadian
Equipment Finance business in 2016. With approximately C$1.5 billion in assets and over 120 employees,
Wells Fargo's Canadian Direct Equipment Finance
business provides loans and leases covering a full range of
commercial equipment for businesses across Canada.
"We have enjoyed a relationship with TD for many years, as
Canada is an important market for
Wells Fargo," said David Marks, Head
of Wells Fargo Commercial Capital. "This group of talented
Canada-based employees and their
equipment finance customers will benefit from TD's strong franchise
and allow us to focus our efforts on our U.S. equipment finance
capabilities while continuing to serve our asset-based lending and
distribution finance customers in Canada. We anticipate a smooth transition and
we're confident that the group's strong focus on customers, deep
relationships and industry expertise will complement TD's existing
business."
"This acquisition will be welcome news for both our existing and
potential new customers. It expands our competitive position in
Canada's Equipment Finance
industry, builds on our strong track record of legendary customer
service, and puts us in a unique position to offer an increased
range of in-demand products and services," says David Pinsonneault, Executive Vice President,
Commercial and Industrial, Canadian Business Banking, TD Bank
Group.
TD's purchase of Wells Fargo Canadian Direct Equipment Finance
business is expected to close in the first half of 2021, subject to
receipt of regulatory and Competition Act approvals and clearance,
and satisfaction of other customary closing conditions.
TD Securities served as financial advisor and Osler, Hoskin & Harcourt LLP served as
legal counsel to TD in connection with this transaction. Wells
Fargo Securities, LLC served as exclusive financial advisor and
McCarthy Tetrault LLP served as legal counsel to Wells Fargo.
Caution Regarding Forward-Looking Information
From time to time, The Toronto-Dominion Bank (the "Bank" or
"TD") makes written and/or oral forward-looking statements,
including in this document, in other filings with Canadian
regulators or the United States
(U.S.) Securities and Exchange Commission (SEC), and in other
communications. In addition, representatives of the Bank may make
forward-looking statements orally to analysts, investors, the media
and others. All such statements are made pursuant to the "safe
harbour" provisions of, and are intended to be forward-looking
statements under, applicable Canadian and U.S. securities
legislation, including the U.S. Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not
limited to, statements made in this document, statements made in
the Bank's Management's Discussion and Analysis ("2020 MD&A")
in the Bank's 2020 Annual Report under the headings "Economic
Summary and Outlook" and "The Bank's Response to COVID-19", for the
Canadian Retail, U.S. Retail, and Wholesale Banking segments under
headings "Key Priorities for 2021", and for the Corporate segment,
"Focus for 2021", and in other statements regarding the Bank's
objectives and priorities for 2021 and beyond and strategies to
achieve them, the regulatory environment in which the Bank
operates, the Bank's anticipated financial performance, and the
potential economic, financial and other impacts of the Coronavirus
Disease 2019 (COVID-19). Forward-looking statements are typically
identified by words such as "will", "would", "should", "believe",
"expect", "anticipate", "intend", "estimate", "plan", "goal",
"target", "may", and "could".
By their very nature, these forward-looking statements require
the Bank to make assumptions and are subject to inherent risks and
uncertainties, general and specific. Especially in light of the
uncertainty related to the physical, financial, economic,
political, and regulatory environments, such risks and
uncertainties – many of which are beyond the Bank's control and the
effects of which can be difficult to predict – may cause actual
results to differ materially from the expectations expressed in the
forward-looking statements. Risk factors that could cause,
individually or in the aggregate, such differences include:
strategic, credit, market (including equity, commodity, foreign
exchange, interest rate, and credit spreads), operational
(including technology, cyber security, and infrastructure), model,
insurance, liquidity, capital adequacy, legal, regulatory
compliance and conduct, reputational, environmental and social, and
other risks. Examples of such risk factors include the economic,
financial, and other impacts of the COVID-19 pandemic; general
business and economic conditions in the regions in which the Bank
operates; geopolitical risk; the ability of the Bank to execute on
long-term strategies and shorter-term key strategic priorities,
including the successful completion of acquisitions and
dispositions, business retention plans, and strategic plans;
technology and cyber security risk (including cyber-attacks or data
security breaches) on the Bank's information technology, internet,
network access or other voice or data communications systems or
services; model risk; fraud to which the Bank is exposed; the
failure of third parties to comply with their obligations to the
Bank or its affiliates, including relating to the care and control
of information, and other risks arising from the Bank's use of
third-party service providers; the impact of new and changes to, or
application of, current laws and regulations, including without
limitation tax laws, capital guidelines and liquidity regulatory
guidance and the bank recapitalization "bail-in" regime; regulatory
oversight and compliance risk; increased competition from
incumbents and new entrants (including Fintechs and big technology
competitors); shifts in consumer attitudes and disruptive
technology; environmental and social risk; exposure related to
significant litigation and regulatory matters; ability of the Bank
to attract, develop, and retain key talent; changes to the Bank's
credit ratings; changes in currency and interest rates (including
the possibility of negative interest rates); increased funding
costs and market volatility due to market illiquidity and
competition for funding; Interbank Offered Rate (IBOR) transition
risk; critical accounting estimates and changes to accounting
standards, policies, and methods used by the Bank; existing and
potential international debt crises; environmental and social risk;
and the occurrence of natural and unnatural catastrophic events and
claims resulting from such events.
The Bank's acquisition of Wells Fargo's Canadian Direct
Equipment Finance business is subject to regulatory approvals and
certain other conditions. There is no assurance that the
acquisition will be completed as described in this document or at
all. There can be no assurance that the Bank will realize the
anticipated benefits or results, and actual results could differ
materially from the expectations expressed in the forward-looking
statements. Examples of material assumptions made by the Bank
in the forward-looking statements include assumptions regarding
expected synergies, based on the Bank's experience.
The Bank cautions that the preceding list is not exhaustive of
all possible risk factors and other factors could also adversely
affect the Bank's results. For more detailed information, please
refer to the "Risk Factors and Management" section of the 2020
MD&A, as may be updated in subsequently filed quarterly reports
to shareholders and news releases (as applicable) related to any
events or transactions discussed under the headings "Significant
Events" in the relevant MD&A, which applicable releases may be
found on www.td.com. All such factors should be considered
carefully, as well as other uncertainties and potential events, and
the inherent uncertainty of forward-looking statements, when making
decisions with respect to the Bank and the Bank cautions readers
not to place undue reliance on the Bank's forward-looking
statements.
Material economic assumptions underlying the forward-looking
statements contained in this document are set out in the 2020
MD&A under the headings "Economic Summary and Outlook" and "The
Bank's Response to COVID-19", for the Canadian Retail, U.S. Retail,
and Wholesale Banking segments, "Key Priorities for 2021", and for
the Corporate segment, "Focus for 2021", each as may be updated in
subsequently filed quarterly reports to shareholders.
Any forward-looking statements contained in this document
represent the views of management only as of the date hereof and
are presented for the purpose of assisting the Bank's shareholders
and analysts in understanding the Bank's financial position,
objectives and priorities and anticipated financial performance as
at and for the periods ended on the dates presented, and may not be
appropriate for other purposes. The Bank does not undertake to
update any forward-looking statements, whether written or oral,
that may be made from time to time by or on its behalf, except as
required under applicable securities legislation.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD" or the "Bank"). TD is the sixth
largest bank in North America by
branches and serves over 26 million customers in three key
businesses operating in a number of locations in financial centres
around the globe: Canadian Retail, including TD Canada Trust, TD
Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD
Insurance; U.S. Retail, including TD Bank, America's Most
Convenient Bank®, TD Auto Finance U.S., TD Wealth
(U.S.), and an investment in The Charles Schwab Corporation; and
Wholesale Banking, including TD Securities. TD also ranks
among the world's leading online financial services firms, with
more than 14 million active online and mobile customers. TD had
C$1.7 trillion in assets on
October 31, 2020. The
Toronto-Dominion Bank trades under the symbol "TD" on the
Toronto and New York Stock
Exchanges.
About Wells Fargo
Wells Fargo & Company
(NYSE: WFC) is a diversified, community-based financial services
company with US$1.92 trillion in
assets. Wells Fargo's vision is to
satisfy our customers' financial needs and help them succeed
financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking,
investment and mortgage products and services, as well as consumer
and commercial finance, through 7,200 locations, more than 13,000
ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 31 countries and territories to support customers who
conduct business in the global economy. Wells Fargo serves one in three households in
the United States. Wells
Fargo & Company was ranked No.
30 on Fortune's 2020 rankings of America's largest corporations.
News, insights and perspectives from Wells Fargo are also available
at Wells Fargo Stories. Additional information may be found at
www.wellsfargo.com | Twitter: @WellsFargo.
View original
content:http://www.prnewswire.com/news-releases/td-bank-group-to-acquire-wells-fargos-canadian-direct-equipment-finance-business-301208481.html
SOURCE TD Bank Group