State Street and BBH call off deal

State Street and Brown Brothers Harriman have agreed to terminate State Street’s proposed acquisition of BBH’s investor services business. In a statement, State Street said: “After consideration of both regulatory feedback and potential transaction modifications to address that feedback, State Street has determined that the regulatory path forward would involve further delays, and all necessary approvals have not been resolved. The proposed modified transaction structure was increasingly complex, presented additional operational risk to State Street and would limit the anticipated transaction benefits relative to original expectations. It would also include delays in the timing and potential limits to the amount of deal synergies. Therefore, we have determined that it is not in the best interests of clients, shareholders or employees to continue to invest time and resources in the transaction in this challenging financial services M&A environment.”

The sale and purchase agreement does not provide for a contractual penalty by either State Street or BBH in connection with this termination.

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