Tuesday 12 December 2017

State Street tipped to buy BoI's asset management unit

Joe Brennan

STATE Street Corp, the third-largest custody bank, is in talks to acquire Bank of Ireland's asset management business, according to three people familiar with the matter.

Macquarie Group, which had been in negotiations to take over the Dublin-based unit, dropped out, according to two of the people, who declined to be identified because the negotiations are private.

No agreement has been reached and the sale may take months, said two of the sources.

The European Commission ordered the sale of the unit as a condition of approving a government bailout of Bank of Ireland.

The unit, also known as BIAM, controlled €25bn of assets as of April 16, down from $57.5bn in 2004, when it was then Ireland's largest investment manager.

Scott Powers, chief executive officer of State Street Global Advisers, said in an interview published on August 3 that the index funds specialist is looking for acquisitions to expand actively managed investments and cut reliance on passive funds.

BIAM is primarily an active manager, while State Street is the second-biggest US provider of index funds after BlackRock.

State Street spokeswoman Carolyn Cichon declined to comment, as did Bank of Ireland's spokesman Dan Loughrey and Karen Smith, a London-based spokeswoman for Macquarie Group. (Bloomberg)

Irish Independent

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