Bank of New York Mellon Corp. announced Monday that it has agreed to buy BHF Asset Servicing GmbH from BHF-Bank Aktiengesellschaft for $343 million.
The deal, which is expected to close in the third quarter, would make BNY Mellon the second-largest asset servicing provider in Germany, with $642 billion of assets under custody and administration and a depot banking volume of $163 billion.
In addition, the acquisition would expand BNY Mellon's existing capabilities to include German domestic custody services and KAG fund administration.
"This transaction expands our capabilities and market share in one of the world's largest fund markets, positioning BNY Mellon at the forefront among securities servicing providers in Germany and creating a strong platform for growth across our businesses," Tim Kearney, the chairman of Europe at BNY Mellon and co-CEO of BNY Mellon Asset Servicing, said in a press release.
The transaction will include the purchase of BHF Asset Servicing's wholly owned fund administration affiliate, Frankfurter Service Kapitalanlage-Gesellschaft mbH. Both would become part of BNY Mellon's Asset Servicing business.
The new BNY Mellon Asset Servicing business in Germany, which is to be based in Frankfurt, will offer a range of products and services for investment companies, financial institutions and institutional investors.