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

[August 02, 2022]  (Reuters) -Canada's Toronto Dominion Bank will buy New York-based boutique investment bank Cowen in a $1.3 billion all-cash deal to boost its presence in the high-growth U.S market.

The TD bank logo is seen on top of the Toronto Dominion Canada Trust Tower in Toronto, Ontario, Canada March 16, 2017. Picture taken March 16, 2017. REUTERS/Chris Helgren/File Photo

Cash-rich Canadian banks have been on a shopping spree in the United States in recent months as they try to find growth away from their home turf where the Big Six banks already control nearly 90% of the market.

The deal announced on Tuesday values each share of Cowen at $39, representing a premium of nearly 10% to the company's last closing price. Cowen shares rose 8% in premarket trading.

Cowen was founded more than a century ago and offers investment banking and brokerage services to its clients.

Earlier this year, TD signed its largest-ever deal when it agreed to buy regional U.S. bank First Horizon for $13.4 billion to expand in the southeastern region of the country.

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

(Reporting by Manya Saini in Bengaluru; Editing by Aditya Soni)



 

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