DOJ closes investigation into Schwab’s proposed acquisition of TD Ameritrade
Completion of the deal is subject to customary closing conditions, including receipt of other regulatory approvals and obtaining the nod of consent from stockholders of both Schwab and TD Ameritrade.
The Charles Schwab Corporation has cleared another milestone in its proposed acquisition of TD Ameritrade Holding Corporation, as the Antitrust Division of the United States Department of Justice (DOJ) has informed Schwab that the DOJ has decided to close its investigation into the transaction.
Completion of the transaction remains subject to the satisfaction of the customary closing conditions set forth in the merger agreement, including receipt of other regulatory approvals and obtaining the necessary approvals from stockholders of both Schwab and TD Ameritrade.
Subject to satisfaction of those conditions, the parties continue to expect that the transaction will close in the second half of the year. Integration is set to take between 18 to 36 months to complete following the close.
Let’s recall that, in November 2019, the companies announced entry into a definitive agreement for Schwab to acquire TD Ameritrade. in an all-stock transaction valued at approximately $26 billion.
Under the transaction terms, TD Ameritrade stockholders will receive 1.0837 Schwab shares for each TD Ameritrade share. This represents a 17% premium over the 30-day volume weighted average price exchange ratio as of November 20, 2019.
The deal is seen to create significant strategic benefits for the combined organization and is expected to deliver attractive returns for the owners of both companies, while further improving the investing and trading experience of both Schwab and TD Ameritrade clients. The combination allows Schwab to continue to add further scale on top of its organic growth, helping to drive sustainable, profitable growth and long-term value creation.
