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State Street, BBH terminate investor services deal

State Street in Boston and Brown Brothers Harriman have agreed to terminate a deal where State Street would have acquired BBH’s investor services business.

The $300 billion-asset State Street disclosed in a regulatory filing that the purchase agreement did not allow for a contractual penalty by either party.

BBH, in a separate release, said the deal was terminated because State Street was unable to secure the necessary regulatory approvals. The company said it has no other plans to sell the business.

“It is disappointing that State Street’s inability to secure regulatory approval precluded the compelling vision that they brought to us,” Bill Tyree, BBH managing partner of BBH, said in the release.

“That said, we can now move beyond the … transaction and return our undivided attention to day-to-day service excellence, to being an employer of choice, and to shaping the many opportunities before us in the interests of our clients and employees,” Tyree added.

State Street agreed to buy the business in September 2021 for $3.5 billion. For months, State Street said it remained committed to the deal amid delays getting regulatory approval.

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