CryptocurrencyInvestingBanksReal Estate

Charles Schwab Said to Buy TD Ameritrade for $26 Billion and Create a Brokerage Giant

November 21, 2019, 12:06 PM UTC

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.

TD Ameritrade has lost 11% since then, valuing the company at $22 billion. Schwab gained 7% in the same period, giving it a stock market value of $57 billion.

CNBC reported earlier the firms were in talks, with a deal likely as soon as today.

More must-read stories from Fortune:

—The stock market has hit 19 new highs in 2019 alone. Why?
—The 2020 tax brackets are out. What is your rate?
—How “VSCO Girls” are killing makeup sales
—What is “quantitative easing”—and why is everyone so worked up about it?
—What powered such a great decade for stocks? This formula explains it all
Don’t miss the daily Term Sheet, Fortune’s newsletter on deals and dealmakers.