NEW YORK, Aug 26 (AFP) - Toronto-Dominion Bank on Thursday said it would pay 3.8 billion dollars for a controlling stake in Maine-based Banknorth Group as the Canadian lender moved to take its first foothold in US branch banking.
TD Bank plans to buy a 51-percent controlling stake in Banknorth. The announcement comes a day after the companies confirmed merger talks.
"This strategic acquisition provides us with an expanding beachhead in the northeastern United States and an outstanding personal and commercial banking complement to our strong US wealth management franchise," said Ed Clark, TD Bank financial group president and chief executive officer.
"The addition of Banknorth to our brand provides us with immediately accretive earnings and a majority interest in a company that has an excellent management team focused on growing their business both organically and through smart and profitable acquisitions."