Scotiabank Group has reached agreement with The Charles Schwab Corp. to purchase Charles Schwab Canada, Co. The acquisition is expected to close in the next 60 days.

Terms of the deal, which is subject to regulatory approval, were not disclosed.

“We are excited about this deal because it is an excellent strategic fit — consistent with our wealth management strategy of building a major brokerage business with a full range of offerings to meet the needs of Canadians,” said Peter Godsoe, chairman and CEO, Scotiabank. “We are also going to be able to leverage the strengths of Schwab and Scotiabank Group to the benefit of our combined clients,” he added.

“The decision to sell our Canadian business did not come easily,” said Bill Atwell, executive vice president, Schwab International. “I’m confident that our legacy of service and innovation will continue and flourish within the Scotiabank Group.”

“I am excited and personally committed to being part of the integration of these businesses,” said Paul Bates, president and CEO, Charles Schwab Canada. “I am impressed with Scotiabank’s culture and platform and I believe that our clients will benefit from excellent tools in a variety of areas.”

Coincident with the acquisition, Scotiabank Group also announced its plan for ScotiaMcLeod to become the overall Canadian brand for the full range of retail brokerage services within the group.

As a result, the intention is that the new brand for discount brokerage will become ScotiaMcLeod Direct Investing. The group’s full service brand will continue as ScotiaMcLeod. This change is consistent with Scotiabank’s Wealth Management strategy of building one major brokerage business with a full range of offerings.

Current Charles Schwab Canada clients and staff will be receiving detailed information explaining the transition process over the next several weeks.

“For now, it is simply business as usual. Charles Schwab Canada will continue to operate until we have completed the integration over the course of the next several months,” said James Werry, head of Scotiabank Group’s retail brokerage businesses. “We have also set up special Schwab/Scotiabank Group teams to answer all customer questions via a dedicated phone line and via the Web.”

The staff at Charles Schwab Canada will continue full time employment throughout the transition phase, which is expected to take three to four months. During this integration phase staffing requirements and positions will be reviewed.