U.S. Bancorp (USB) has agreed to purchase Deutsche Bank's (DB) municipal bond trustee business.
The Minneapolis company announced Monday that it would buy the Deutsche unit, which has about $57 billion of assets under administration and 1,100 trust and agency contracts. The companies expect the deal to close in the third quarter; the price was undisclosed.
U.S. Bank Global Corporate Trust Services currently has more than $3 trillion under administration and approximately 125,000 contracts. The deal will increase the division's presence in New York, California, Texas, Mississippi and Tennessee. It currently does not have significant operations in Mississippi and Tennessee, a spokeswoman said.
"This transaction complements the existing U.S. Bank municipal bond trustee business and will further strengthen our position as the No. 1 provider of municipal trustee and agency services in the nation," Bryan Calder, the corporate trust division's president, said in the release. "This acquisition is consistent with U.S. Bank's ongoing commitment to continued strategic business investments and its commitment to corporate trust services."