Brokerage Charles Schwab buys its big rival TD Ameritrade for $26 billion

Charles Schwab Corp. will acquire TD Ameritrade Holding Corp. for about $26 billion in equity, the two major brokerages announced on Monday.

Under the terms of the agreement, TD Ameritrade shareholders will receive 1.0837 Charles Schwab shares for each of their TD Ameritrade shares. This represents a premium of 17% above the weighted average share price of TD Ameritrade over the last 30 days until November 20, 2019.

One of TD Ameritrade’s top online brokers has also announced that it is ceasing its search for a CEO, appointing current CFO Stephen Boyle to serve temporarily.

“With this transaction, we will use the unique opportunity to build a company with the soul of a contender for the championship title and the resources of a large financial services institution that will be uniquely positioned to serve the investment, commercial and investor wealth management needs of each phase. on their financial journeys, “said Charles Schwab President and CEO Walt Bettinger.

The combined brokerage company will serve 24 million client accounts with more than 5 trillion. dollars on them, the companies said.

Following the news of the brokerage mega deal, Charles Schwab’s shares started today’s Wall Street trading with a decrease of about 1%, while TD Ameritrade’s shares rose more than 3%.

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About the Author: Alex Marcell

He likes dogs, pizza and popcorn. Already a fanboy of Nintendo and Sony, but today throws anything. He has collaborated on sites and magazines such as GameBlast, Nintendo World, Hero and Portal Pop, but today is dedicated exclusively to Spark Chronicles.

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