Mubasher: American multinational investment bank Morgan Stanley has announced that it will acquire discount brokerage E-Trade Financial Corporation in a consideration of $13 billion, Reuters reported on Thursday.
The deal is set to boost Morgan Stanley’s wealth management unit, as the New York-based bank will acquire over 5.2 million client accounts and $360 billion of retail client assets from E-Trade.
Moreover, E-Trade’s current CEO, Mike Pizzi, will continue to run the business following the merger.
The brokerage’s shareholders will receive 1.0432 Morgan Stanley shares for each share as part of the deal, which translates to $58.74 per share.
The transaction is expected to be closed in the fourth quarter of 2020.