(Reuters) – Morgan Stanley (N:) said on Thursday it would buy discount brokerage E*Trade Financial Corp (O:) in an all-stock deal worth about $13 billion, the biggest deal by a Wall Street bank since the financial crisis.
The deal will help Morgan Stanley boost its wealth management unit, a business that Chief Executive Officer James Gorman has been trying grow to help it ride out weak periods for trading and investment banking.
E*TRADE has over 5.2 million client accounts with over $360 billion of retail client assets, adding to Morgan Stanley’s existing 3 million client relationships and $2.7 trillion of client assets.
E*Trade shareholders will receive 1.0432 Morgan Stanley shares for each share as part of the deal. That translates to $58.74 per share – a premium of 30.7% to the last closing price of E*Trade shares.
The deal is expected to close in the fourth quarter of 2020.
Shares of E*Trade Financial were up 24.6% at $56 in the premarket trade.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Be the first to comment