U.S. Bank has entered into a definitive agreement to purchase the debt servicing and securities custody services client portfolio of MUFG Union Bank.
Under the terms of the agreement, U.S. Bank will acquire approximately 600 client relationships and $320 billion in assets under custody and administration.
U.S. Bank’s Investment Services division has more than $7.7 trillion in assets under custody and administration globally.
In addition to offering global corporate trust and custody services, it also offers alternative investment and fund custody and administration services.
The deal was signed 23 December 2020 and is expected to close in Q1 2021 subject to regulatory approval and satisfaction of customary closing conditions. Financial terms are not disclosed.
Gunjan Kedia, vice chair, U.S. Bank Wealth Management and Investment Services, suggests the transaction “is a great fit for U.S. Bank”.
He adds: “We are thrilled to have the opportunity to increase our presence on the West Coast and solidify our position as a leading provider of corporate trust, institutional trust and fund custody services. We look forward to putting the resources of U.S. Bank to work for our new clients and providing an exemplary client experience.”
Ranjana Clark, head of global and Americas transaction banking and Bay Area president, says: “After a thorough analysis of our market position in the debt servicing and securities custody services product areas, we made the decision to sell these products and services within our Transaction Banking portfolio, which will enable us to reinvest capital in other strategic areas of focus to the benefit of our clients and MUFG Union Bank.”
.jpg)