BNY Mellon Eyes Northern Trust: Potential Merger Buzz
BNY Mellon may merge with Northern Trust, sparking a major shift in the asset servicing and wealth management sectors. The Wall Street Journal revealed talks between the two firms. Despite current uncertainties and regulatory hurdles, market conditions hint at future banking consolidations.
Shares of Northern Trust surged by 5% in premarket trading on Monday following news reported by the Wall Street Journal that Bank of New York Mellon Corp (BNY Mellon) has shown interest in merging with the asset and wealth management firm. Although discussions have taken place, an official bid has yet to surface.
A potential merger between BNY Mellon, the world's leading custodian bank, and Northern Trust could significantly alter the asset servicing and wealth management landscape. As per the report, talks have occurred, though discussions are still in the preliminary stages without a formal proposal. Analysts note that any potential deal would face antitrust challenges and regulatory hurdles.
BNY Mellon and Northern Trust declined to comment on the matter. Despite skepticism from analysts regarding the likelihood of the merger due to current unknowns and the regulatory landscape, there is a broader expectation of increased bank mergers as economic conditions stabilize by 2025, encouraging more consolidations in the financial sector.
(With inputs from agencies.)
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