Canadian TD Bank buys US brokerage Cowen in $1.3 billion deal

The TD bank logo can be seen atop the Toronto Dominion Canada Trust Tower in Toronto, Ontario, Canada, March 16, 2017. Photo taken March 16, 2017. REUTERS/Chris Helgren/File Photo

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Aug 2 (Reuters) – Canada’s Toronto Dominion Bank (TD.TO) will acquire New York-based boutique investment bank Cowen (COWN.O) in a $1.3 billion cash deal to expand its presence in the burgeoning US market. strengthen.

Canadian cash-rich banks have been busily shopping in the United States in recent months as they try to find growth outside their home territories, where the Big Six banks already control nearly 90% of the market. read more

The deal announced Tuesday values ‚Äč‚Äčeach Cowen share at $39, representing a nearly 10% premium over the company’s last closing price. Cowen shares rose 8% in premarket trading.

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Founded over a century ago, Cowen provides investment banking and brokerage services to its clients.

Earlier this year, TD signed its biggest deal ever when it agreed to buy US regional bank First Horizon (FHN.N) for $13.4 billion to expand in the country’s southeastern region.

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

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Reporting by Manya Saini in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

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