The TD financial institution brand is seen on prime of the Toronto Dominion Canada Belief Tower in Toronto, Ontario, Canada March 16, 2017. Image taken March 16, 2017. REUTERS/Chris Helgren/File Picture

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Aug 2 (Reuters) – Canada’s Toronto Dominion Financial institution (TD.TO) will purchase New York-based boutique funding financial institution Cowen (COWN.O) in a $1.3 billion all-cash deal to spice up its presence within the high-growth U.S market.

Money-rich Canadian banks have been on a procuring spree in america in latest months as they attempt to discover progress away from their residence turf the place the Huge Six banks already management practically 90% of the market. learn extra

The deal introduced on Tuesday values every share of Cowen at $39, representing a premium of practically 10% to the corporate’s final closing worth. Cowen shares rose 8% in premarket buying and selling.

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Cowen was based greater than a century in the past and gives funding banking and brokerage providers to its shoppers.

Earlier this yr, TD signed its largest-ever deal when it agreed to purchase regional U.S. financial institution First Horizon (FHN.N) for $13.4 billion to increase within the southeastern area of the nation.

The businesses count on the deal to shut within the first quarter of 2023.

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Reporting by Manya Saini in Bengaluru; Modifying by Aditya Soni

Our Requirements: The Thomson Reuters Belief Ideas.

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