Summary
State Street Corporation (STT) filed an 8-K on September 6, 2022, to provide an update on its proposed acquisition of Brown Brothers Harriman's (BBH) Investor Services business. The company indicated that the transaction, initially expected to close by September 6, 2022, will remain in place beyond this date as it is still subject to regulatory approvals and other closing conditions. State Street continues to view the acquisition's strategic rationale as attractive. Significant discussions are underway with regulators, leading State Street and BBH to work on a modified structure, terms, and valuation for the transaction. These proposed modifications aim to facilitate the resolution of the regulatory review process. The company is seeking amendments to the transaction terms, including the purchase price, which would require mutual agreement from both BBH and State Street's Board of Directors. While the acquisition agreement remains in place, there is no assurance of its eventual consummation or the timing thereof.
Key Highlights
- 1State Street's acquisition of BBH's Investor Services business is delayed beyond the original September 6, 2022, target closing date.
- 2The transaction is still subject to regulatory approvals and other closing conditions.
- 3State Street and BBH are actively working on a modified structure, terms, and valuation for the acquisition.
- 4Discussions with banking regulators are ongoing regarding the proposed modifications.
- 5State Street is seeking amendments to the transaction terms, including the purchase price.
- 6The acquisition agreement remains in place, but either party can terminate without penalty after September 6, 2022, absent further agreement.
- 7State Street reiterates its belief in the strategic attractiveness of the acquisition.