State Street Corporation and Mizuho Financial Group Announce Agreement for State Street to Acquire Mizuho’s Global Custody Businesses
Tokyo, Japan and Boston, Massachusetts – State Street Corporation (NYSE: STT) and Mizuho Financial Group, Inc. (President & Group CEO: Masahiro Kihara) have announced that they have entered into an agreement for State Street to acquire Mizuho’s global custody and related businesses outside of Japan. These businesses support the overseas investments of Mizuho’s Japanese clients.
Under the terms of the agreement, State Street will acquire Mizuho’s global custody and related businesses in Europe, the Middle East, Africa, and the Americas. These businesses, which are currently operated by Mizuho through its local subsidiaries Mizuho Trust & Banking Co., Ltd. and Mizuho Securities Co., Ltd., will become part of State Street Global Markets, a division of State Street.
Impact on State Street
This acquisition is expected to significantly expand State Street’s presence in the Asian market and strengthen its position as a leading global custodian. With Mizuho’s overseas businesses bringing in approximately $1.2 trillion in assets under custody and administration, State Street will see a substantial increase in its assets under custody.
Furthermore, the acquisition will provide State Street with a larger client base, particularly in Japan. This will enable the company to offer a broader range of services to these clients and potentially lead to cross-selling opportunities.
Impact on the World
The acquisition is expected to have a positive impact on the global financial services industry. The consolidation of Mizuho’s global custody businesses under State Street will result in increased competition and efficiency in the market.
Additionally, this deal underscores the ongoing trend of consolidation in the financial services industry, particularly in the custody and asset servicing sector. The acquisition is also likely to lead to increased collaboration and partnerships between financial institutions, as they seek to offer a broader range of services to their clients.
Conclusion
State Street Corporation’s acquisition of Mizuho Financial Group’s global custody and related businesses outside of Japan is expected to significantly expand State Street’s presence in the Asian market and strengthen its position as a leading global custodian. The deal will provide State Street with a larger client base, particularly in Japan, and offer opportunities for cross-selling and increased efficiencies.
The acquisition is also expected to have a positive impact on the global financial services industry, with increased competition and collaboration between financial institutions. The ongoing trend of consolidation in the financial services industry is likely to continue, as institutions seek to offer a broader range of services to their clients in an increasingly complex and interconnected global economy.
- State Street to acquire Mizuho’s global custody and related businesses outside of Japan
- Deal expected to significantly expand State Street’s presence in the Asian market
- Acquisition to provide State Street with a larger client base and opportunities for cross-selling
- Consolidation of Mizuho’s global custody businesses under State Street to result in increased competition and efficiency in the market
- Ongoing trend of consolidation in the financial services industry is likely to continue
