Home Business Canada’s TD Bank to buy U.S. brokerage Cowen in $1.3 billion deal

Canada’s TD Bank to buy U.S. brokerage Cowen in $1.3 billion deal

by News Desk
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Randy Rissling | Toronto Star | Getty Images

Canada’s toronto dominion bank Acquires New York-based boutique investment bank Cowen Completed a $1.3 billion all-cash transaction to enhance its presence in the high-growth US market.

Cash-rich Canadian banks have been shopping in the US in recent months as they look to find growth away from their homes where the Big 6 banks already control nearly 90% of the market.

The deal, announced Tuesday, values ​​each of Cowen’s shares at $39, representing a nearly 10% premium over the company’s final closing price. Cohen shares rose 8% in premarket trading.

Cowen was founded over a century ago to provide investment banking and brokerage services to clients.

Earlier this year, TD signed its largest deal to date, agreeing to acquire First Horizon, a US regional bank, for $13.4 billion to expand its business in the Southeastern US region. did.

The companies expect the transaction to close in the first quarter of 2023.

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