OMAHA, Neb. (AP) - Charles Schwab’s $26 billion acquisition of rival broker TD Ameritrade is set to close next week after the companies received final approval from regulators.
The Federal Reserve signed off on the stock swap deal this week after antitrust regulators and shareholders approved it in June. The companies said the deal that was announced last November - not long after both brokers eliminated commissions on most stock trades - will close on Tuesday.
Schwab and TD Ameritrade haven’t said how many jobs are expected to be eliminated after the merger, but significant cost cuts are expected. The companies say it will take 18 to 36 months to integrate the two companies after the transaction is complete.
The combined company plans to move its headquarters to Schwab’s new campus in Westlake, Texas, but it is expected to maintain sizeable operations in Schwab’s home base of San Francisco. The future of TD Ameritrade’s headquarters in Omaha, Nebraska, is less clear.
TD Ameritrade stockholders will receive 1.0837 Schwab shares for each TD Ameritrade share they own as part of the deal.
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