HSBC pulls plug on TD Waterhouse deal
HSBC Bank has pulled out of negotiations to purchase the Australian operations of TD Waterhouse. The $20-$30 million deal was scheduled to be finalised in the last week of February but HSBC pulled out during the final due diligence process.
Neither HSBC nor TD Waterhouse would comment on the failed deal.
The Toronto Dominion Bank-owned TD Waterhouse is the fourth largest online broker in Australia in terms of market share with 8 per cent. It's believed not to be profitable currently but ACNielsen.consult says it has the best customer satisfaction rating amongst the online brokers.
Commonwealth Securities is the largest Australia-based online broker with 40 per cent of the market followed by Westpac and E*Trade with around 12 per cent each.