This $26 Billion Buyout Just Ignited the Finance Sector

Charles Schwab will buy TD Ameritrade in a $26 billion all-stock deal.

“This would create a Goliath in Wealth Management,” Wells Fargo senior analyst Mike Mayo said, as quoted by CNBC.  In fact, it will now create an incredible financial beast with more than $5 trillion in client assets.

As part of the deal, AMTD shareholders will receive 1.0837 Schwab shares for every share held.  The deal is expected to close in the second half of 2020.

This wasn’t the only big deal of the day.

LVMH Just Agreed to Acquire Tiffany for $16.2 Billion

LVMH will buy Tiffany & Co. for $135 a share in cash, or $16.2 billion.  “The acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States,” says LVMH, as quoted by CNBC.

Alessandro Bogliolo, CEO of Tiffany, said: “Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values,” as quoted in an LVMH press release.

Novartis Buying Drug Maker The Medicines Co. for $9.7 Billion

Novartis just struck a deal to buy The Medicines Co. for $9.7 billion, or $85 a share.

All as Novartis continues to acquire companies to expand its drug portfolio.  “We’re hoping to reimagine treatment of the leading global cause of death. This could be a strong step forward in Novartis’ transformation into a focused medicines company,” Novartis CEO Vas Narasimhan tweeted, as quoted by MarketWatch.