Merrill Lynch to Sell Canadian Securities Unit

Merrill Lynch & Co., which has been trying to cut costs in a bid to boost flagging profits, said Wednesday that it has agreed to sell its entire Canadian retail securities business to Canadian brokerage Wood Gundy Inc. for undisclosed terms.

Merrill Lynch, the No. 1 U.S. securities firm, said the deal includes the transfer of its Canadian offices and work force as well as access to its U.S. research facilities.

Wood Gundy Chairman G. Edmund King told a press conference that the deal was attractive because of Merrill Lynch’s “broad distribution, superior client service and new products.”

Merrill Lynch’s retail sales force in Canada includes 264 registered representatives and 156 managerial and sales support personnel, as well as 265 operations and systems employees in 20 Canadian offices.

Wood Gundy, one of Canada’s largest brokerages, has 385 registered representatives operating in 39 offices across Canada.