DOJ Asks Schwab, TD For More Info In Antitrust Probe

The US Department of Justice (DOJ) is conducting a second review of the US$26 billion planned deal for Charles Schwab to acquire TD Ameritrade, according to the companies’ SEC filings. The DOJ is responsible for examining antitrust concerns in large corporate mergers.

The new request extends the waiting period for 30 days after TD Ameritrade and Schwab have substantially complied with the terms, unless the period for review is extended voluntarily by the parties and the DOJ or is terminated earlier by the DOJ, the TD Ameritrade filing notes. 

“TD Ameritrade and Schwab have and will continue to cooperate fully with the DOJ in its review,” the filing states.

Questions about potential antitrust violations were raised by industry players and observers soon after the deal was announced in November last year.

“It really is common for a deal of this size for the DOJ to do its homework,” Tom Nally, president of TD Ameritrade Institutional, said Thursday at the firm’s LINC conference in Orlando, Florida.

“This is the first time the DOJ is examining our industry,” he added. “This is not a surprise to us. We knew it was likely…We don’t anticipate it’s going to slow down the deal.” 

Nally said that while the deal is expected to close in the second half of 2020, the integration would take two to three years.

Full Content: Bloomberg

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