Toronto/IBNS: Canada's TD Bank Group has reportedly called off its US$13.4-billion takeover deal to acquire First Horizon Corp. over regulatory approval delay.

"While today's announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability.

"Our strong capital position, disciplined credit quality, expense control measures...develop and expand deep client relationships across all of our markets, which include some of the fastest-growing U.S. markets, while maintaining a strong, asset-sensitive balance sheet well-positioned for the current rate environment," said First Horizon Chairman, President and Chief Executive Officer Bryan Jordan in a press release.

Under the terms of the agreement, TD will pay a US$200-million break fee to First Horizon.

The payment would reportedly be in addition to a US$25-million fee reimbursement owed to First Horizon under the merger agreement.

(Reporting by Asha Bajaj)