BNY Trust Co. of Canada is buying CIBC Mellon's corporate trust assets for an undisclosed amount, sources say.
The deal would make the Canadian unit of Bank of New York Mellon Corp. a powerhouse in the corporate trust market, doubling its assets under administration to more than C$300 billion (US$287 billion). It also underscores the bank's commitment to expanding its market share in Canada.
BNY Mellon, created through the 2007 merger of Bank of New York Co. and Mellon Financial Corp., is headed by a Canadian, Robert Kelly.
The deal is BNY Mellon's second major transaction in less than a month. On Feb. 2, PNC Financial Services Group Inc. sold its back-office operations to BNY Mellon for US$2.3 billion.
Kelly has previously said the bank's priority is to build its core business. In the past five years it has doubled the assets in its custody business through acquisitions.
Since the 2008 global credit crisis, Canadian Imperial Bank of Commerce has reduced its U.S. capital markets exposure significantly.