Shareholders of online broker E*Trade Financial have given their green light to the firm’s proposed acquisition by Morgan Stanley.
Over 99% of E*Trade shareholders voted in favour of the deal.
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The deal awaits regulatory approvals, with completion anticipated in the final quarter of this year.
The all-stock deal, valued at nearly $13bn, was announced in February this year.
As per the agreed terms of the merger deal, E*TRADE stockholders will be entitled to receive 1.0432 Morgan Stanley shares for each share held.
The combined business will manage $3.1trn in client assets and 8.2 million retail client relationships.
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By GlobalDataThe deal will combine E*TRADE’s U.S. stock plan business with Shareworks by Morgan Stanley.
Through the deal, Morgan Stanley is said to become a top player across Financial Advisory, Workplace, and Self-Directed channels.
At the time of the deal’s announcement, E*TRADE CEO Mike Pizzi said: “By joining Morgan Stanley, we will be able to take our combined offering to the next level and deliver an even more comprehensive suite of wealth management capabilities.
“Bringing E*TRADE’s brand and offerings under the Morgan Stanley umbrella creates a truly exciting wealth management value proposition and enables our collective team to serve a far wider spectrum of clients.”
Morgan Stanley expects the deal to boost its return on tangible common equity by over 100bps and increase Wealth Management’s pre-tax profit margin to more than 30%.
