Charles Schwab Acquiring TD Ameritrade
Reports last week indicated that Charles Schwab was looking into acquiring TD Ameritrade. This information has been confirmed by the United States Securities and Exchange Commission as of Monday, November 25, 2019. These two financial corporations have entered a finalized agreement which will see Charles Schwab acquire TD Ameritrade. The deal is costing Schwab numerous shares, with all TD Ameritrade stockholders receiving a 17% premium on the change of stocks.
The acquiring transaction will be completed in the second quarter of 2020. TD Ameritrade Stockholders will obtain 1.0837 Schwab Stocks for every single share they maintain. After the deal has been completed, integrating Ameritrade into Charles Schwab is slated to take anywhere from 18 to 36 Months.
The TD Ameritrade Board of Directors has terminated their search for a new chief executive officer, with Steven Boyle taking the leadership position. Replacing him will be Jon Peterson, who will keep his duties as the Managing Director of Analysis and Reporting. These two men will assist TD Ameritrade with Schwab’s acquisition and integration of their services.
These men will also receive assistance from Joe Martin, who will lead a team of experts from both companies. Joe and his team will work continuously to determine how this partnership can best assist Charles Schwab. All integration efforts will be completed in Westlake, Texas. This is where the two firms will manage their combined headquarters going forward.
Charles Schwab Benefits
The President and Chief Executive Officer at Charles Schwabe, Walt Bettinger, spoke on this acquisition. He stated: “We have long respected TD Ameritrade since our early days pioneering the discount brokerage industry, and as a fellow advocate for investors and independent investment advisors. Together, we share a passion for breaking down barriers for investors and advisors through a combination of low cost, great service and technology.
With this transaction, we will capitalize on the unique opportunity to build a firm with the soul of a challenger and the resources of a large financial services institution that will be uniquely positioned to serve the investment, trading and wealth management needs of investors across every phase of their financial journeys.”
These are two of the largest publicly traded discount brokerages maintained in the United States of America. This partnership comes as a significant move forward for the American FX Trading Market. It’s anticipated that once this acquisition is completed, the two companies will have more than $5 Trillion in combined assets. It will also boast Charles Schwab to more than twelve million clients.