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State Street’s Brown Brothers Harriman deal is off, due to regulatory delays



State Street and Brown Brothers Harriman “mutually agreed” to terminate State Street’s planned acquisition of BBH’s investor services business on 30 November 2022. Library picture: State Street’s offices in Kirchberg. Photo: Mike Zenari

State Street and Brown Brothers Harriman “mutually agreed” to terminate State Street’s planned acquisition of BBH’s investor services business on 30 November 2022. Library picture: State Street’s offices in Kirchberg. Photo: Mike Zenari

State Street has called off its $3.5bn takeover of Brown Brothers Harriman’s investor services business.

State Street and BBH announced the acquisition in September 2021, with the aim of creating the world’s largest investor services provider, but the deal had faced lengthy regulatory reviews.

“After consideration of both regulatory feedback and potential transaction modifications to address that feedback, State Street has determined that the regulatory path forward would involve further delays, and all necessary approvals have not been resolved,” the company stated on Wednesday.

BBH’s managing partner stated that it was “disappointing” that State Street was unable to secure regulatory approval.

No termination charges were incurred with the break-off, State Street said.

State Street has a large business as a bank for institutional investors, with $35.7trn in assets under custody or administration, as of 30 September 2022. The firm employs 41,000 staff globally, including roughly 1,000 in Luxembourg.

In addition to investor services, BBH provides private banking and investment management services. Privately held BBH had $5.4trn in assets under custody when the deal was announced last year. It has around 6,000 employees globally, including an estimated 381 in Luxembourg.