American investment bank Morgan Stanley has closed the $13bn deal to purchase discount brokerage E*E*Trade Financial.

The all-stock deal was announced this February and secured the green light from E*TRADE shareholders in July.

Under the agreement, E*TRADE stockholders will be entitled to receive 1.0432 Morgan Stanley shares for each share held.

The deal adds E*TRADE’s 5.2 million client accounts and $360bn retail client assets to Morgan Stanley’s three million client relationships and $2.7trn in client assets. The combined group has $3.1trn in client assets and 8.2 million retail client relationships.

The cost savings from the consolidation is expected to be around $400m.

The deal combines Shareworks by Morgan Stanley – the bank’s stockplan business – with E*TRADE’s U.S. stock plan business.

As part of the deal, E*TRADE CEO Michael Pizzi will move to Morgan Stanley.

Pizzi will be in charge of E*TRADE’s direct-to-consumer, digital self-directed business that will retain the E*TRADE brand and will also co-lead the equity administration business.

At the same time, he will be part of the Morgan Stanley operating and management committees.

Moreover, E*TRADE’s independent director Shelley Leibowitz has secured a seat on the Morgan Stanley board.

Morgan Stanley chairman and CEO James Gorman said: “The addition of E*TRADE positions us as an industry leader in Wealth Management across all channels and segments, and significantly increases the scale and breadth of our Wealth Management franchise, which now oversees $3.3 trillion in assets.

“E*TRADE has built a best-in-class, direct-to-consumer digital channel and a strong brand over the past 38 years. The addition of their premier offering will provide enhanced capabilities to all our clients and Financial Advisers.”

Morgan Stanley has been in the news for several reasons lately.

Last month, Morgan Stanley’s Shareworks partnered with Mitsubishi UFJ Trust and Banking to offer stock plan administrative services to executives and employees of companies in Japan.

In August this year, Morgan Stanley unveiled a new accelerator to support sustainable innovations.