State Street cancels $3.5bn acquisition of Brown Brothers arm

Due to regulatory issues

State Street Corporation has cancelled its planned $3.5bn acquisition of the investor services business of Brown Brothers Harriman & Co.

State Street attributed the decision to regulatory problems, stating that the regulatory path forward would involve further delays and not all necessary approvals have been resolved. The transaction structure had become "increasingly complex" and "presented additional operational risk to State Street", the firm said. The deal, which was announced in September last year, would have seen the acquisition of BBH's custody, accounting, fund administration, global markets and technology services operations. FCA fines Julius Baer £18m over 'corrupt' relationship with Russian oil conglomer...