Charles Schwab to Buy TD Ameritrade for $26 Billion, Reports Say

Charles Schwab to Buy TD Ameritrade for $26 Billion, Reports Say (Bloomberg) -- Charles Schwab Corp. is buying TD Ameritrade Holding Corp. for $26 billion, with a deal expected to be announced Thursday morning, Fox Business reports, citing unidentified people familiar with the situation. Shares in Charles Schwab reversed an earlier decline in pre-market trading and are up 2.4%, while TD Ameritrade reduced some of the earlier gains and is up 17%. Both companies didn’t immediately respond to emails and phone calls seeking comment. A deal would create a firm with roughly $5 trillion in combined assets, consolidating an industry under pressure from a price war that escalated when Schwab last month announced plans to eliminate commissions for U.S. stocks, exchange traded funds and options. The move forced other brokerages to follow suit and triggered a slump in the shares of such firms, with TD Ameritrade among the hardest hit.