(the original article appeared on Reuters)

Toronto-Dominion Bank (TD.TO) and TD Ameritrade (AMTD.O) are buying Scottrade Financial Services [SCTRD.UL] for $4 billion in a deal that would combine two of the biggest U.S. discount brokerages, the companies said on Monday.

TD Ameritrade, the largest U.S. discount brokerage by trade executions, said it would pay $2.7 billion for Scottrade’s brokerage business. Toronto-Dominion Bank, TD’s largest shareholder, is acquiring Scottrade Bank for $1.3 billion.

Discount brokerages are facing weak trading volumes and slow revenue growth as wealth managers cut fees amid intense competition, sparking consolidation within the industry. E*Trade Financial Corp (ETFC.O), another discount broker, said in July that it would buy online brokerage OptionsHouse for $725 million.

Rodger Riney, the founder, chief executive officer and controlling shareholder of St. Louis-based Scottrade, will join TD Ameritrade’s board after the deal closes, the companies said. Riney said last year he was being treated for a form of blood cancer.

TD Ameritrade, which is 42 percent owned by Toronto Dominion Bank, said it expected the deal to bring about $450 million in annual savings and more than $300 million in “additional longer-term opportunities.”

Omaha, Nebraska-based TD Ameritrade, which also reported a higher-than-expected quarterly profit on Monday, provides services to about 6 million client accounts with combined assets of more than $600 billion.

The companies expect the deal to close by Sept. 30. Barclays Capital Inc (BARC.L) is financial adviser to TD Ameritrade, while Wachtell, Lipton, Rosen & Katz is legal adviser. Goldman Sachs & Co (GS.N) is advising Scottrade, with Sullivan & Cromwell acting as legal adviser.