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Charles Schwab’s acquisition of TD Ameritrade approved by shareholders
Posted on Friday, 05 June 2020 13:20
California-headquartered financial services provider Charles Schwab said its shareholders have approved the firm’s planned acquisition of Nebraska-based broker TD Ameritrade.
Over 99.0 per cent of the investors voted to give the planned combination the green light.
Schwab chief executive Walt Bettinger said the acquisition will generate long-term value for the group’s shareholders and result in the creation of a company which will combine both businesses’ strengths.
Completion of the deal still requires approval from some regulatory bodies and is slated to follow during the second half of this year.
Charles Schwab signed on the dotted line to pick up TD Ameritrade, via its Americano Acquisition vehicle, in November 2019.
Under the terms of the deal, it will pay USD 26.00 billion for the firm, with the consideration to be in the form of stock.
TD Ameritrade’s history dates back to 1975, when it was founded by Joe Ricketts in Omaha.
The company now provides investing and trading services for 11.00 million client accounts totalling over USD 1,000 billion in assets, while it also offers custodial services for more than 6,000 independent registered investment advisors.
Its customers place around 500,000 daily trades, on average.
2019 was the biggest year on record in terms of the value of deals targeting securities brokerages which were announced worldwide, according to Zephyr, the M&A database published by Bureau van Dijk.
In all, transactions worth a combined USD 59.84 billion were signed off over the 12 months, ahead of 2015’s USD 54.37 billion.
By contrast, volume for the year was one of the lowest on record, placing 15th overall, ahead of only the years from 2000-2004.
2019’s value was boosted considerably by Charles Schwab’s TD Ameritrade purchase, which accounted for 43.4 per cent of total value for the year.
© Zephus Ltd