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Charles Schwab to buy TD Ameritrade in $26 billion deal

New corporate HQ to be in suburban Dallas
Posted at 7:14 AM, Nov 25, 2019
and last updated 2019-11-25 15:43:10-05

OMAHA, Neb. (KMTV) — Charles Schwab announced plans Monday to buy rival TD Ameritrade in an all-stock deal valued at $26 billion.

Under the agreement, Ameritrade stockholders will receive 1.0837 Schwab shares for every share held. The transaction has been unanimously approved by the Boards of Directors of Schwab and TD Ameritrade, as well as the Strategic Development Committee of TD Ameritrade's Board.

In making the announcement, Schwab said it would be moving the corporate headquarters for the combined companies to its new facility in suburban Texas. Schwab is currently headquartered in San Francisco. There have been no details released yet about how the move would affect Ameritrade employees based in Omaha, but the company's news release did vaguely discuss consolidation of jobs.

Schwab President and CEO Walt Bettinger said, "We have long respected TD Ameritrade since our early days pioneering the discount brokerage industry, and as a fellow advocate for investors and independent investment advisors. Together, we share a passion for breaking down barriers for investors and advisors through a combination of low cost, great service and technology. 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."

Analysts predict the agreement could draw scrutiny from anti-trust regulators. The resulting combined firm is expected to serve 24 million client accounts with more than $5 trillion in client assets.

Nebraska Governor Pete Ricketts provided this statement regarding the sale and what it could mean for Nebraska:

“Today’s announcement by TD Ameritrade creates significant uncertainty for the thousands of Nebraskans who have loyally worked for the company through the years. As Governor and the former COO of Ameritrade, I am anxious to see what their decision means for the people of Nebraska."

In the coming days, I will work to personally make the case to Schwab to stay committed to Omaha. Our cost of doing business is incredibly competitive and our people are the most hardworking in the nation. We can help Schwab be successful and take their business to the next level as they compete nationally and internationally.”

Omaha Mayor Jean Stothert has provided this statement in relation to the potential impact on Omaha:

“I have asked to speak personally to the CEO of TD Ameritrade to understand how the merger will impact employees and the company’s presence in Omaha in the future. Unfortunately, he is not available today to talk to me, so the information I have comes only from media reports.

Our concern is for the employees. While we don’t yet know the impact on the Omaha workforce, we are prepared to work with our partner, the Greater Omaha Chamber, to assist employees in any capacity we can.

There are excellent career opportunities in Omaha and if this merger requires unexpected transitions to new employment, TD Ameritrade employees will have the resources and support they need.”

The deal is expected to close in the second half of 2020, with integration efforts to follow immediately after.