Scotiabank has agreed to purchase Charles Schwab Canada for an undisclosed sum. The acquisition is expected to close in the next 60 days, and follows Schwab's recent exits from the Japanese and Australian markets.
Under the agreement, Schwab clients in both direct investing and full service brokerage will gain access to Scotia Capital equity research, as well as the bank's online financial services platform offering banking, borrowing, investing and other financial tools.
Peter Godsoe, chairman and CEO, Scotiabank, says: "We are excited about this deal because it is an excellent strategic fit - consistent with our wealth management strategy of building a major brokerage business with a full range of offerings to meet the needs of Canadians."
Bill Atwell, executive vice president, Schwab International, says the decision to sell Schwab's Canadian business was not an easy one. "It was very important for us to find a purchase partner who would provide the right opportunities for our clients. This was a major consideration in our selection of a successful bid," says Atwell.
The staff at Charles Schwab Canada will continue full time employment throughout the transition phase which is expected to take three to four months. During this integration phase staffing requirements and positions will be reviewed.
In a related announcement, Scotiabank is to incorporate its retail brokerage services under the ScotiaMcLeod brand, so that discount brokerage will become ScotiaMcLeod Direct Investing. The group's full service brand will continue as ScotiaMcLeod.