The Bank of Nova Scotia said Monday it will double its size in the online investing market by buying E*Trade Canada for $444 million.
President and CEO Rick Waugh said the deal is "an excellent growth opportunity" and fits with bank plans to increase its Canadian wealth-management business.
Trading stocks online is becoming more important to Canadians, said Chris Hodgson, the vice-president in charge of the bank's domestic personal banking arm.
E*Trade Canada has 190 employees and $4.7 billion in assets under administration, the bank said in a release Monday.
It's being sold by its parent, U.S.-based E*Trade Financial Corp., which has been struggling to turn around. The U.S. company has been selling non-core assets like its Canadian arm, Donald H. Layton, chairman and CEO, said in a release.
E*Trade Financial stock closed down 26 cents US at $2.46, after trading for as much as $23.63 in the past year. The deal was announced after the market closed.
Scotiabank expects that E*Trade Canada will continue as a separate brand "in the near term."
Last year, Scotiabank bought online brokerage boutique TradeFreedom Securities Inc.
Share Tools
Top News Headlines
- Drummond report on Ontario calls for cutbacks
- The Ontario government must curtail its spending with the kind of cuts not seen since the Mike Harris years, according to a report by former TD Bank chief economist Don Drummond. more »
- Children of immigrants challenged at school, home
- By 2016, foreign-born youth and Canadian-born youth from immigrant families will make up a quarter of the country's population, according to predictions by the Canadian Council on Social Development. As their numbers grow, more attention is being paid to their successes and failures. more »
- B.C. house party trial hears from tearful teens
- Two teenagers cried as they testified at the trial of a B.C. woman who was charged after a teen died while her son was hosting a party at her house in 2008. more »
- Whitney Houston funeral to be livestreamed
- Whitney Houston's funeral will be livestreamed, to satisfy the desire of fans to grieve alongside family members at the Saturday memorial. more »
Latest Business Headlines
- Nortel collapse linked to hacking attack
- A former systems security adviser to Nortel Networks says he has no doubt that extensive cyber attacks on the technology company contributed to its downfall. more »
- Competition Bureau investigating global banks
- Canada's Competition Bureau is investigating allegations that certain global banks or financial brokerage firms conspired to manipulate interest rate derivatives for more than three years. more »
- Canadian housing market cools in January
- The housing resale market retreated in January following a strong December finish to 2011, according to the Canadian Real Estate Association. more »
- U.S. Fed divided on new bond buying
- The U.S. Federal Reserve isn't about to launch another bond-buying program to boost the economy — at least not anytime soon. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12362.03 | 7.56 |
| DOW | 12780.95 | -97.33 |
| NASDAQ | 2915.83 | -16 |
| SP 500 | 1343.23 | -7.27 |
| NYSE COMPOSITE | 7998.65 | -30.96 |
| AMEX | 2419.99 | -9.07 |
| TSX-VENTURE | 1633.58 | 3.55 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Drummond report on Ontario calls for cutbacks
- Barefoot girl's icy trek not blamed on babysitter
- Immigrants the proudest Canadians, poll suggests
- 2 NDP MPs back final Commons vote to kill gun registry
- Honduras prison fire kills hundreds
- Canadian housing market cools in January
- Bodyguard hired for bully victim in Fredericton
- Legalize pot, say former B.C. attorneys general
- Russians' abusive plane tirade to cost them $19K
