A number of published reports claim that Charles Schwab is offering $26 billion to acquire TD Ameritrade – a deal that would combine two of the nation’s largest discount brokers.
A deal could be announced as early as today, according to CNBC, which first reported the firms were in talks, citing an unidentified person familiar with the discussions.
The combined firm would have more than $5 trillion in combined assets, about $3.8 trillion from Schwab and $1.3 trillion from TD Ameritrade.
The Financial Times reported that Walter Bettinger, the chief executive of Schwab, is expected to run the combined company, citing “people briefed on the matter.” TD Ameritrade’s chief executive Tim Hockey announced last summer that he would be stepping down in February 2020.
The motivation for the deal is being laid at a discount brokerage price war that escalated last month when Schwab announced plans to eliminate commissions for U.S. stocks, exchange traded funds and options.
