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Merrill acquiring Midland
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June 22, 1998: 11:03 a.m. ET
$855M deal gives U.S. firm presence in Canadian brokerage business
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NEW YORK (CNNfn) - Merrill Lynch & Co. Inc. said Monday it will acquire Canadian investment firm Midland Walwyn Inc. for $855 million.
Merrill Lynch (MER) will issue 0.24 of a share for each Midland share. Toronto-based Midland is Canada's largest independent retail broker.
The companies said both boards of directors have approved the deal, which they expect to be completed by the end of the third quarter.
The combined company will be called Merrill Lynch Canada. Midland's Robert Schultz will be chairman and chief executive officer.
"The nature of Canadian markets will change significantly over the next few years, with continuing deregulation, industry consolidation and strong growth in demand for personal financial services," said Herbert Allison, Merrill Lynch president and chief operating officer.
"With this acquisition, we will be ideally positioned to help clients in Canada and worldwide take advantage of the many new opportunities in the Canadian market, while achieving strong returns for shareholders."
Merrill Lynch said it expects to take a charge of $22 million, or 5 cents a share, for the merger. It also said the deal should not effect earnings for 1998 and 1999.
Shares of Merrill Lynch (MER) fell 3/8 to 89-15/16 in early Monday trading. 
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