Schwab, TD Ameritrade Confirm $26B All-Stock Merger

Charles Schwab SCHW will acquire TD Ameritrade AMTD for $26 billion, the companies confirmed on Monday. Reports of the acquisition first broke last Thursday.

Charles Schwab will pay approximately 1.0837 Schwab shares for each TD Ameritrade share.

"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," Charles Schwab CEO Walt Bettinger said in a statement.

"Partnering with Schwab on this transformative opportunity makes the right strategic and financial sense for TD Ameritrade,"Stephen Boyle, TD Ameritrade EVP and CFO, said in a statement. "...Together, we can deliver the ultimate client experience for retail investors and independent registered investment advisors. We can continue to challenge the status quo, pooling our resources and expertise to transform lives—and investing—and deliver sustainable, long-term value to our many stakeholders."

The TD Ameritrade Board of Directors has suspended its previously disclosed CEO search, naming Boyle, as the company's interim president and CEO. He will assume leadership of the company effective immediately, guiding management through its fiscal 2020 plan and the proposed integration with Schwab.

Charles Schwab shares last closed at $48.20, while TD Ameritrade shares closed at $48.13. Both stocks were trading down marginally Monday morning.

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