State Street and BBH 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 on Wednesday.
BBH’s managing partner 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.