M and A

BoNY to Buy Mellon Financial

Stephen Harris 5 December 2006

BoNY to Buy Mellon Financial

Asset management and private wealth management will account for 29 per cent of revenue of the new entity created by the deal in which Bank o...

Asset management and private wealth management will account for 29 per cent of revenue of the new entity created by the deal in which Bank of New York has agreed to buy Mellon Financial for about $17.6 billion. The merger will create the world’s largest custody bank and the fifth-largest US money manager, with $1.1 trillion in assets. Bank of New York will name 10 out of 18 directors and its shareholders will control 63 per cent of the new company. Robert Kelly, chairman and chief executive officer of Mellon, will become chief executive officer of newly named Bank of New York Mellon Corp, which will be based in New York. The merger will cement Bank of New York's position as one of the world's 10 largest hedge fund administrators, servicing a $160 billion of hedge-fund assets. It will bring together about $35 billion in funds of hedge funds and similar investment strategies.

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