Charles Schwab Canada Sold to Scotiabank Group.
Issue: Feb 13, 2002
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 13, 2002
The Charles Schwab Corporation today announced an agreement to sell its wholly owned subsidiary, Charles Schwab Canada, Co., to the Scotiabank Group. The transaction is expected to close in the next 60 days, subject to regulatory approval. Financial terms of the sale are not being disclosed.
Under the agreement, the Scotiabank Group will acquire a client base in both self-directed and full service brokerage representing US$950 million in assets. Scotiabank will also obtain Charles Schwab Canada's workforce and infrastructure.
The transition process is expected to take several months. During that time, Charles Schwab Canada will continue to offer services and share trading through all channels (branch, web, phone and wireless). Clients will receive detailed information about the integration plan and expanded service options with Scotiabank Group throughout the next several weeks.
"The decision to sell our Canadian business did not come easily," said Bill Atwell, Executive Vice President, Schwab International. "Since launching the business in 1999, we have established Charles Schwab Canada as a premiere integrated brokerage firm. We achieved significant growth, but not enough to bring us to our goal of top tier market share. As a result, we concluded that our best business strategy is to pass on what we started to a local firm that shares our commitment to the client. I'm confident that our legacy of service and innovation will continue and flourish within the Scotiabank Group," Atwell added.
Schwab and Scotiabank are committed to making the transition as smooth as possible for clients and staff. Paul Bates, President and Chief Executive Officer of Charles Schwab Canada is personally committed to the seamless integration of the two offerings, and will work closely with management from Scotiabank Group.
"We look forward to welcoming Schwab clients to the Scotiabank Group and are committed to providing them with a high standard of service excellence and value-added features. These features include access to our top-ranked Scotia Capital equity research as well as a leading edge and totally integrated online financial services platform including banking, borrowing, investing and other financial tools -- all backed by our top ranked capability for client service," said James Werry, head of Scotiabank Group's retail brokerage businesses.
The Charles Schwab Corporation (NYSE:SCH), through Charles Schwab & Co., Inc. (member SIPC / NYSE), U.S. Trust Corporation, CyberTrader, Inc. (member SIPC / NASD) and its other operating subsidiaries, is one of the largest financial services firms in the U.S. serving 7.8 million active accounts with $846 billion in client assets through 429 domestic offices, five regional client telephone service centers and automated telephonic and online channels. The Charles Schwab & Co., U.S. Trust and CyberTrader web sites can be reached at www.schwab.com, www.ustrust.com and www.cybertrader.com, respectively.
Scotiabank's Wealth Management Group incorporates the key personal investment and advisory activities within the Scotiabank Group, offering clients a comprehensive range of products and services encompassing mutual funds, full-service and direct investing brokerage, and private banking and trust in Canada and abroad.
Scotiabank Group is one of North America's premier financial institutions, with more than $179 billion (C$284 billion) in assets and approximately 51,000 employees worldwide, including affiliates. It is also Canada's most international bank with more than 2,000 branches and offices in more than 50 countries. Visit us at www.scotiabank.com. (0002-5883)
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