Wachovia Corp. and A.G. Edwards Inc. have come to an agreement under which Wachovia will acquire A.G. Edwards, which will be combined with Wachovia Securities, LLC, to create a retail brokerage firm with $1.1 trillion in client assets and nearly 15,000 financial advisors.
The combined firm will have an enhanced share of the US brokerage market with significantly increased penetration in 48 of the 50 largest metropolitan statistical areas.
The combined full-service firm will have a national footprint of 3,350 brokerage locations, including 1,500 dedicated retail offices in all 50 states and the District of Columbia.
The organisation will offer advice to clients based on research from multiple providers, provide customer service using an open architecture platform and have access to a range of financial products and services.
“This combination with A.G. Edwards, which is widely considered one of the most highly regarded remaining independent brokerage firms in the industry, will further enhance our scale and relevance,” says Ken Thompson, chairman and CEO, Wachovia.
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 combined firm will operate as Wachovia Securities and will be headquartered in St. Louis, Missouri.
The merger is expected to be completed in the fourth quarter of 2008 and integration is expected to be completed by the end of the first quarter of 2009.