Charles Schwab to buy rival TD Ameritrade in $26B stock deal

25 Novembre, 2019, 19:08 | Auteur: Auguste Feret

Charles Schwab Corp said on Monday it would acquire TD Ameritrade Holding Corp in an all-stock deal valued at US$26-billion, combining the two largest USA discount brokerages.

TD Ameritrade stockholders would receive 1.0837 Schwab shares for each TD Ameritrade share they own. Schwab, America's original discount broker, will now have even more sway over the sector it pioneered almost a half-century ago.

Shares of TD Ameritrade, an Omaha-based brokerage that's partly owned by Toronto-Dominion Bank, fell less than 1% on Friday after surging 17% the day before as investors learned of a possible deal.

The tie-up creates a mega-firm with $5 trillion in assets - a Goliath that may attract the attention of antitrust regulators, analysts say.

The combined company will eventually be headquartered at Schwab's new campus in Westlake, Texas, northwest of Dallas.

The Toronto-Dominion Bank, which now holds approximately 43 per cent of TD Ameritrade's stock, will have an ownership position of approximately 13 per cent in the combined company, with other TD Ameritrade stockholders and existing Schwab stockholders holding approximately 18% and 69%, respectively. The Canadian lender will have two new seats on the combined firm's board, while TD Ameritrade will name a single director. Schwab is already the dominant player in the industry with $3.8 trillion in client assets, and TD Ameritrade would add another $1.3 trillion to that pot, reports CNBC.

The Walking Dead Spin-Off Title Revealed
The name of the new AMC series that begins the planned TV expansion of The Walking Dead universe has just been revealed. She co-stars with Aliyah Royale , Alexa Mansour, Annet Mahendru , Nicolas Cantu, Hal Cumpston. and Nico Tortorella .

Manchester United will look at loan signings in January, says Solskjaer
The Red Devils travel to Bramall Lane on Sunday evening to lock horns with Sheffield United in Premier League action. "This is a team with character, there are boys who want to go forward in their careers".

Star Wars: Rise of Skywalker clip has a Stormtrooper surprise
In the 30-second bit, the Resistance heroes express their surprise over the fact the First Order now has flying stormtroopers. The back-end of the bikes shoots upwards catapulting the Jet-Troopers through the air before they ignite their rocket packs.

Charles Schwab chief executive Walter Bettinger said: "We believe the combination of our two great companies positions us to be competing and winning in the investment services business for the long run".

While the deal could give Schwab an edge in the price war, analysts and anti-trust experts said the merger would face tough regulatory scrutiny, although it could still be approved.

Schwab's last month eliminated commissions for US stock trading, forcing other brokerages to follow suit and sweeping away an important revenue stream. The acquisition of TD Ameritrade capitalizes on the industry tumult that Schwab created in October by cutting commissions to zero.

By itself, Schwab may control close to half the market for acting as a custodian for money managed by registered investment advisers, for example, while TD Ameritrade may control about 15% to 20%, according to Kyle Voigt, an analyst with Keefe, Bruyette & Woods.

TD Ameritrade, whose CEO Tim Hockey was due to step down in February, suspended its CEO search and named Chief Financial Officer Stephen Boyle as interim head to lead the company's proposed integration.

Conseillé:



Populaire

Ryan Reynolds crashes 'SNL' Weekend Update with a bunch of sex jokes
The move prompts the actual Tracy Morgan to show up and defend Ferrell: "This is Will Ferrell , he can do what he wants to do".

Fin de tournée exhibition triomphale pour Roger Federer en Amérique latine — Equateur
Au Mexique, c'est sur un court installé dans l'arène de la "Plaza de Toros" que Federer et Zverev ont établi une nouvelle marque. Durant cette tournée, Federer a remporté trois exhibitions sur quatre contre l'Allemand qui s'était imposé à Buenos Aires.

Precious jewels worth £855m stolen in spectacular heist at historic Dresden museum
Monday's theft is the second high-profile heist in Germany in recent years, after a 100kg, 24-carat giant gold coin was stolen. With a strict limit on the number of daily visitors, entrance to the historic vault can only be reserved in advance.

Boston Celtics' Kemba Walker dealing with sprained neck
The All-Star guard immediately fell to the floor, where he remained mostly motionless before being taken off on a stretcher. Celtics guard Walker was hospitalised following a scary collision against the Denver Nuggets at the Pepsi Center on Friday.

Taapsee’s Epic Reply to Hindi Arrogance
On this Taapsee shut him the best way possible saying, "I am also an actress in the Tamil and Telugu industries". The actress is not asking for an edge over them, she is asking for equality.

Elizabeth Banks says she felt judged for using surrogate to have kids
For Banks, " Charlie's Angels " was all about offering up new female characters for young women to look up to on the big screen. She says that there are going to be bad moments, but you committed to something.

Mauro Ranallo WWE Status Update Following Corey Graves Situation
Frank Shamrock , who is Ranallo's best friend and agent, took issue with Graves going public with his criticism of Ranallo. Ranallo has often been criticized by fans online for his overuse of pop culture references during broadcasts.

Philippines rescues British man, wife held by jihadists
Their captors did not get any ransom, said the military's Western Mindanao Command Spokesperson Major Arvin Encinas. The extremist Abu Sayyaf group have been behind other kidnappings of foreigners in the past.

'Liverpool look unstoppable' - Guardiola concedes Man City face struggle to retain title
If I don't win, I'm in trouble, but I'm incredibly satisfied to work in this city and this club and I want to help this club to get better.

Un enfant tué par la chute d'une sculpture en glace à Luxembourg — Marché de Noël
Celui-ci est survenu à quelques mètres de la patinoire du marché de Noël de Luxembourg-Ville, qui avait ouvert ses portes jeudi. Dimanche après-midi, une maisonnette en glace avait été fabriquée, devant laquelle on pouvait poser pour prendre des photos.