BNY Mellon has signed a definitive agreement to acquire the corporate trust business of CIBC Mellon.
The acquisition will more than double BNY Mellon’s share of the corporate trust market in Canada and expand its position in a number of segments, servicing domestic and cross-border debt issuances, structured credit and securitizations, government stimulus programmes and public private partnership transactions.
The acquisition is expected to close by the end of the first quarter, subject to regulatory approvals. Terms of the agreement were not disclosed.
"This transaction enhances our leadership position and presence in Canada and demonstrates our strong commitment to growing our corporate trust business globally," says Scott Posner, chief executive officer of BNY Mellon Corporate Trust. "Our focus will be on continuing to provide the high quality service that clients have come to expect from CIBC Mellon while offering them a broader set of services that meet their growing and evolving needs."
"This transaction is a win-win for everyone involved," adds Thomas S. Monahan (pictured), president and chief executive officer of CIBC Mellon. "Our corporate trust clients will be able to access the global capabilities of the world’s largest corporate trust provider, BNY Mellon, and CIBC Mellon will be able to further focus on providing market leading products and services across its core client base. As always, high quality client service will remain our priority up to and following the close of this deal."
Upon completion of the deal, BNY Mellon, through its wholly-owned subsidiary BNY Trust Company of Canada, will service approximately USD300bn in outstanding debt with offices in Vancouver, Calgary, Toronto and Montreal.
In addition, it will offer clients a range of new services, such as cross-border issuer services, administration outsourcing, portfolio analytics and document custody.