Mergers & Acquisitions

Schwab to Acquire TD Ameritrade in Reshaping of Industry (1)

Nov. 25, 2019, 12:05 PM; Updated: Nov. 25, 2019, 4:55 PM

Charles Schwab Corp. agreed to buy TD Ameritrade Holding Corp. for about $26 billion in a deal that will reshape the retail brokerage business.

TD Ameritrade stockholders will receive 1.0837 Schwab shares for each TD Ameritrade share, the companies said in a statement Monday. That’s a 17% premium based on the average share price as of the close on Nov. 20.

Announcement of the deal comes after news of an acquisition broke on Thursday, sending up shares of both firms. Schwab, America’s original discount broker, will now have even more sway over the sector it pioneered nearly a half-century ago....

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