US Bank (NYSE: USB) has signed a definitive agreement for the acquisition of MUFG Union Bank’s Debt Servicing and Securities Custody Services client portfolio. According to the terms of the agreement, US Bank will purchase $320 billion in assets and 600 client relationships under MUFG’s administration and custody.
US Bank enhancing its position as a fund custody services provider
Gunjan Kedia, US Bank Wealth Management and Investment Services Vice-chair, said that the transaction is a great fort for the bank. He said that they are delighted for the opportunity to bolster their presence on the West Coast and also cement US Bank’s position as a leading institutional trust, corporate trust, and fund custody services, provider. Gunjan added that the bank is popular for working one-on-one with customers to understand their needs and offer tailored, proactive solutions meeting their goals. He indicated that they are looking forward to using US bank resources to support new clients and offer exemplary customer experience.
Global & Americas Transaction Banking Head and Bay Area President, Ranjana Clark said that they decided to sell Debt Servicing and Securities Custody products after considerable analysis of US Bank’s position. Clark said that the move will allow the bank to reinvest capital into other strategic focus areas for the benefit of MUFG Union Bank and its customers. He added that for these customer relationships they are acquiring they are confident of delivering exceptional service and support.
US Bank has more than $7.7 trillion in assets under its custody
It is important to note that the US Bank’s Investment Services unit currently has over $7.7 trillion assets under its administration and custody globally. Besides the provision of global custody and corporate trust services, the bank also offers fund custody and alternative investment as well as administrative services.
US Bank entered the definitive agreement on December 23, 2020, and they expect to close the transaction in the first quarter of this year. However, the deal is subject to meeting customary closing conditions and regulatory approvals. The bank didn’t disclose the financial terms of the deal.