Where Charles Schwab Stands on 3 Key Acquisitions
While most financial firms have spent the last few months trying to put out fires and figure out where the economy will be in six months or a year, Charles Schwab (NYSE: SCHW) has been busy working through acquisitions. The asset management and brokerage firm announced several deals just months before the coronavirus sent the economy into a tailspin. Not only has the coronavirus pandemic slowed merger and acquisitions (M&A) activity in the financial sector, it has even forced many banks to terminate deals. Schwab, however, has managed to make good progress. Here is where it stands on three key deals.
Image source: Businesswire.
In a landmark announcement last November, Schwab said it would acquire the large brokerage firm TD Ameritrade in an all-stock deal worth $26 billion. The acquisition came amid a shake-up in the brokerage industry, as larger, more established brokers began offering commission-free trades in order to stave off intensifying competition in the space. The deal quickly ran into issues after the Department of Justice (DOJ) began investigating over antitrust concerns. But in recent weeks, the DOJ dropped the investigation, and on June 4, Schwab shareholders approved the deal, getting it back on track.
Source Fool.com
