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Charles Schwab completes acquisition of TD Ameritrade


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Charles Schwab completes acquisition of TD Ameritrade

Charles Schwab Corp. completed its acquisition of TD Ameritrade Holding Corp., creating a company with about $6 trillion in client assets across 28 million brokerage accounts.

The integration of the companies' operations is expected to happen over the next 18 to 36 months, according to a news release. Until the integration is complete, Charles Schwab and TD Ameritrade will continue to operate separate broker/dealers to serve their respective clients. Until then, the products, services and delivery channels currently available from the two companies remain largely unchanged.

The deal was approved by the shareholders of both parties in June, while a related transaction was approved by the Federal Reserve Board at the end of September.

The aggregate number of shares of Charles Schwab stock issuable as merger consideration was approximately 509 million common shares and 77 million shares of Charles Schwab nonvoting common stock. In a separate press release, TD Bank Group confirmed that it received an approximately 13.5% stake in Charles Schwab, consisting of 9.9% voting common shares and the remainder in nonvoting common shares, which are convertible into voting common shares upon transfer to a third party.

TD Bank Group expects to record a revaluation gain of approximately $2.3 billion based on a Charles Schwab share price of $36.94 and the impact of certain adjustments.

Also, effective upon the merger, Todd Ricketts, Brian Levitt and Bharat Masrani were elected to Charles Schwab's board.

Along with the deal's completion, Charles Schwab announced that effective Jan. 1, 2021, it expects to complete the planned change in the designation of its corporate headquarters from San Francisco to its new campus in Westlake, Texas.

Credit Suisse Securities (USA) LLC served as financial adviser and Davis Polk & Wardwell LLP acted as legal adviser to Charles Schwab. PJT Partners LP and Piper Sandler & Co. served as financial advisers and Wachtell Lipton Rosen & Katz acted as legal adviser to the strategic development committee of TD Ameritrade's board.