The companies announced the $26 billion deal in November and on June 3 received the green light from the Department of Justice, which said it decided to close its investigation of the planned acquisition. The day after the DOJ’s announcement, both Schwab and TD Ameritrade’s shareholders approved the acquisition as well.
The Federal Reserve Board also announced ysterday that it will allow The Toronto-Dominion Bank of Canada and its U.S. subsidiary, TD Group US Holdings, to take a minority, non-controlling stake in Schwab in connection with Schwab’s planned acquisition of TD Ameritrade.
The Fed’s approval means that “all necessary approvals of the proposed acquisition have now been received,” Schwab says.
The companies expect to spend 18 to 36 months on integration following the close of the deal, Schwab says.
“Until then, Schwab and TD Ameritrade will continue to operate as separate broker-dealers, and clients of the two firms can continue to do business with their respective companies as they do today and can expect the same level of great service,” the company says.
Schwab served 14.3 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.5 million banking accounts and $4.5 trillion in client assets as of the end of August, according to the company.
TD Ameritrade has around 13 million client accounts representing about $1.5 trillion in assets, the company says. TD Ameritrade also offers custodial services to over 7,000 RIAs, according to the company.
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