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Deals & People May 31, 2007
Wachovia to Acquire A.G. Edwards
Wachovia and A.G. Edwards announced Thursday that Wachovia will buy A.G. Edwards for $6.8 billion in cash and stock.
Reported by Rebecca Moore
The deal will form the second largest retail brokerage firm in the U.S., according to the announcement on Wachovia’s Web site. The combined brokerage firm will operate as Wachovia Securities and be headquartered in St. Louis, Missouri, with 3,350 brokerage locations nationwide, $1.1 trillion in client assets, and 15,000 financial advisers.
Other A.G. Edwards businesses – including research, underwriting and investment banking, mutual funds and trust – will be consolidated into the appropriate Wachovia lines of business, the announcement said.
The transaction is expected to close in the fourth quarter of 2007, and full integration is expected by the first quarter of 2009. After the acquisition Wachovia will be the second-largest American retail brokerage by number of brokers, after Merrill Lynch & Co. Inc., and Wachovia Securities will be the third-largest brokerage by assets and number of branches.
Daniel J. Ludeman, currently president and CEO of Wachovia Securities, will keep those roles at the combined brokerage firm. A.G. Edwards Chairman and CEO Robert Bagby will be Chairman of the brokerage firm.