TD Bank to sell entire 10.1% stake in Charles Schwab in $14.6bn deal
Toronto-Dominion Bank (TD Bank) has agreed to sell its entire 10.1% equity stake in US-based brokerage Charles Schwab, amounting to approximately 184.7 million shares of common stock.
TD Bank to sell its interest in Charles Schwab for $14.6 billion
The sixth-largest bank in North America plans to sell 165,443,530 shares through a registered offering at $79.25 per share, equating to around $13.1 billion, while Charles Schwab will repurchase 19,235,208 shares for $1.5 billion, with the deal expected to close on 12 February 2025.
“As part of our strategic review, we have been evaluating capital allocation and have made the decision to exit our Schwab investment,” explains Raymond Chun, the banking group’s newly appointed president and CEO.
Chun adds that the bank plans to use CAD 8 billion (around $5.58 billion) of the proceeds to “repurchase our stock”.
“We will invest the balance of the proceeds in our businesses to further support our customers and clients, drive performance and accelerate organic growth,” he says.
The news comes after TD Bank agreed to pay around $3.09 billion in fines in October 2024 following the resolution of investigations related to its US Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance programmes.
As part of the settlement, TD Bank’s two US banking subsidiaries, TD Bank, NA and TD Bank USA, NA, were restricted to a combined asset cap of $434 billion.
