TD Ameritrade currently has 100 branches while Scottrade has 500.
TD Ameritrade, 42-percent owned by Toronto Dominion Bank, said it expected to make annual cost savings of $450 million as a result of the deal, with another $300 million of potential savings identified in the longer term.Īs part of those plans, Hockey said around 25 percent of the combined business's 600 branches will be closed. Hockey said TD Ameritrade will look at further deals which "make strategic and financial sense" in addition to Scottrade. There are lots of opportunities for additional competitors to get into our space and continue to drive price competition." "I still think this is a considerably competitive marketplace, that’s for sure. "“We certainly believe the regulators will look fairly at this deal and will opine," he said in an interview.
TD Ameritrade CEO Tim Hockey said the deal will leave the combined business well-placed to compete and respond if a price war over commissions accelerates. E*Trade Financial Corp (O: ETFC), another discount broker, said in July that it would buy online brokerage OptionsHouse for $725 million while Ally Financial Inc (N: ALLY) purchased TradeKing Group for about $275 million a month earlier. It is the latest in a wave of consolidation among discount brokerages, which are facing weak trading volumes and slow revenue growth as wealth managers cut fees amid intense competition. regulators, will produce a combined business with around 10 million client accounts and $1 trillion in assets, which will execute around 600,000 trades per day. The purchase of Scottrade by TD Ameritrade, which is subject to approval by U.S. Toronto-Dominion Bank, TD's largest shareholder, is acquiring Scottrade Bank for $1.3 billion in a deal that will expand its U.S. discount brokerage by trade executions, said it would pay $2.7 billion for Scottrade's brokerage business. discount brokerages, the companies said on Monday. (Reuters) - Toronto-Dominion Bank (TO: TD) and TD Ameritrade (O: AMTD) are buying Scottrade Financial Services for $4 billion in a deal that will combine two of the biggest U.S.