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Under the terms of the transaction announced on Tuesday, State Street will acquire BBH’s management, accounting, fund management, global markets and technology services businesses.
Boston-based State Street is expected to be completed by the end of the year and will also provide access to BBH’s expertise in cross-border alternatives, exchange-traded funds and other high-growth asset classes, the two companies said.
After the closure, BBH Investor Services employees will move to State Street, and $ 5.4 trillion in assets under custody (AUC) will move to State Street’s books, which already hold $ 31.9 trillion in AUC.
The Wall Street Journal The merged company said it would outperform its rival Bank of New York Mellon Corp. as the largest service company in the money management industry.
The New York-based BBH will continue to independently own and operate its own private banking and investment management business, the two companies said.
Ron O’Hanley, CEO and Chairman of State Street, said: Expand our capabilities and scale. “
Bill Tyree, BBH’s managing partner, said: .. “
Tuesday’s announcement will come in a few months Report State Street was looking for multiple options to grow its wealth management business, including merging with competitors, with the aim of scaling up.
sauce: Equity news