Charlotte, N.C – A little more than a year after acquiring one of the nation’s top mortgage lenders, Wachovia said Thursday it would buy A.G. Edwards for $6.8 billion in a deal that will create the nation’s second-largest retail brokerage.
It’s the latest purchase by Wachovia and retail banking rival Bank of America as they seek to expand their financial service businesses.
“It’s not surprising that the industry is ripe for this consolidation,” said Michael Poulos, managing director and head of North American retail and business banking at consulting firm Oliver Wyman. “This essentially gives Wachovia more access.”
The deal solidifies the nation’s No. 4 bank as a top player in a competitive market, as regional securities dealers find themselves under pressure from larger rivals who can poach talent and better cope with falling commissions.
The combined unit will operate as Wachovia Securities, headquartered in St. Louis.
