The European Commission has approved, under the EU Merger Regulation, the acquisition of the investor services business of Brown Brothers Harriman & Co.’s (BBH) by State Street Corporation.

BBH is active in investor services, private banking and investment management. State Street is active in the field of financial services and, more specifically, in the provision of domestic and global securities services for institutional investors.

The Commission found that despite the parties’ horizontal overlaps in the markets for global custody and fund administration service, the proposed transaction would raise no competition concerns given that the parties are not close competitors and that a number of strong competitors will remain in each of the markets following the transaction. The transaction was examined under the normal merger review procedure.

The deal was first announced in September 2021. Back then, State Street Corporation (NYSE:STT) and Brown Brothers Harriman & Co. (BBH) entered into a definitive agreement for State Street to acquire BBH’s Investor Services business, including its custody, accounting, fund administration, global markets and technology services, for $3.5 billion in cash.

Following the transaction, BBH will continue to independently own and operate its separate Private Banking and Investment Management businesses.