Bank of New York Buying PNC Unit for $2.1B
NEW YORK (
) --
Bank of New York Mellon
(BK) - Get Report
reached an agreement to acquire
PNC's
(PNC) - Get Report
Global Investment Servicing subsidiary for $2.1 billion.
The deal includes the purchase of $1.57 billion of stock and repayment ofintercompany debt from PNC. BNY Mellon, in a statement Tuesday, said it plans to raise about $800 million in equity as part of the transaction.
The all-cash deal, which will be accretive in the first year, is expected to close in the thirdquarter.
"This acquisition significantly strengthens our service offering and market share with asset managers and financial advisors, while delivering attractive returns to our shareholders," said Robert P. Kelly, Bank of New York's chairman and CEO, in a statement. "We expect the transaction to accelerate our growth, deliver economies of scale and strengthen our leadership position for asset servicing and Pershing."
PNC has been shopping Global Investment Servicing for about three months, the
Wall Street Journal
reported last week. The unit provides back-office processing for financial advisers, fund managers and brokers.
-- Reported by Joseph Woelfel in New York.
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