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Bank of New York Mellon (NYSE:BK) is considering a potential acquisition of Northern Trust, as reported by The Wall Street Journal. The two CEOs have had discussions, but there is no formal offer on the table yet. Northern Trust has expressed a desire to remain independent.
If successful, the deal would create a powerful investment services firm, combining BNY’s assets under custody, which total $53 trillion, with Northern Trust’s offerings. The merged company would have over $3 trillion in assets under management, enhancing its competitiveness against major players like BlackRock and Vanguard. BNY’s CEO Robin Vince has already seen the company’s stock rise nearly 50% over the past year, fueled by a turnaround strategy.
However, the acquisition faces challenges; Northern Trust remains committed to independence, and regulatory scrutiny may arise due to BNY’s global systemic status. Moreover, both firms occupy dominant positions in custodial and asset servicing, raising potential antitrust concerns.
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