State Street Terminates Proposed Acquisition of BBH's Investor Services Business

State Street Corporation announced Wednesday (Nov. 30, 2022) that it has agreed with Brown Brothers Harriman & Co. (BBH) to terminate its proposed acquisition of BBH's Investor Service business after the deal failed to secure the necessary regulatory approvals. 

In Sept. 2021, State Street had entered into a definitive agreement​ with BBH to acquire its Investor Services businesses, including its custody, accounting, fund administration, global markets and technology services, for $3.5 billion in cash.

"From the beginning of our discussions with BBH in 2021, I have been impressed by the quality of the BBH Investor Services business and its people. The decision not to proceed with this transaction was not taken lightly and is in no way a reflection of the quality of the BBH franchise," explained Ron O'Hanley, Chairman and Chief Executive Officer at State Street Corporation.

He added: "Since we announced the proposed acquisition, we maintained our focus on achieving a transaction that would meet our strategic and financial objectives. Our overall strategy is strong and differentiated, and we remain confident in the organic growth trajectory of our business. We will continue to be deliberate in managing our capital in the best interest of our shareholders."

"It is disappointing that State Street's inability to secure regulatory approval precluded the compelling vision that they brought to us," said Bill Tyree, Managing Partner of BBH. "That said, we can now move beyond the State Street transaction and return our undivided attention to day-to-day service excellence, to being an employer of choice, and to shaping the many opportunities before us in the interests of our clients and employees. BBH has no other plan to sell the Investor Services business or to pursue another transaction."