State Street to Buy Global Custody Business From Mizuho Financial

State Street Corp. STT has agreed to acquire global custody and related businesses outside of Japan from Mizuho Financial Group, Inc. MFG. These businesses aid the international investments of Mizuho’s Japanese clients.The financial terms of the deal have not been disclosed. The deal is anticipated to be completed by the fourth quarter of 2025, subject to requisite regulatory and other customary closing approvals.Details of the Deal Pursued by STT & MFGMizuho Financial conducts its global custody and related operations outside Japan via its local subsidiaries, Mizuho Trust & Banking (Luxembourg) S.A., which is owned by Mizuho Trust & Banking Co., Ltd., and Mizuho Bank (USA), a wholly owned subsidiary of Mizuho Bank, Ltd.Following the completion of the deal, STT will partner with Mizuho Financial to support its Japanese clients with global custody and related services. Meanwhile, MFG will continue to offer trust and custody services for domestic assets within Japan, capitalizing on its expertise and network.Stefan Gmür, head of Asia Pacific and Strategic Business Growth at State Street, said, “Japan, Luxembourg and the United States are all important markets to State Street. This transaction demonstrates our strong commitment to further accelerating our growth in these markets.”State Street’s Rationale Behind the Takeover From MizuhoState Street has been doing business in Japan for more than 35 years, with a proficient team of more than 500 employees across Tokyo and Fukuoka. It offers a comprehensive suite of services such as trust, global custody, outsourcing, data management, trading and financing to institutional investors. Its Fukuoka center has aided clients in Japan and the Asia Pacific for more than a decade.In Luxembourg, where it has been present for 35 years, State Street provides fund administration, custody and transfer agency services. Hiroshi Kobayashi, head of Japan at State Street, stated, “Having deep familiarity with the requirements and expectations of Japanese institutional investors, we look forward to meeting their needs not only in global custody but also data management, risk and performance analytics, currency management and securities finance.”This move aligns with the company’s efforts to expand its presence in strategically important and familiar markets, boosting its revenues and scale and optimizing its global operations. Last week, STT announced the restructuring of its joint venture arrangement in Luxembourg and Ireland. In November 2024, the company collaborated with Bridgewater Associates to boost its core alternative investment strategies.Shares of STT have gained 15.5% compared with the industry’s 10.8% growth in the past six months.Image Source: Zacks Investment ResearchSTT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Expansion Efforts by Another Finance FirmLast month, JPMorgan JPM announced an additional $50 billion allocation toward direct lending, solidifying its presence in the lucrative private credit market. The move, unveiled at its 30th annual Global Leveraged Finance Conference, signals the company’s intent to become a dominant force in private credit.By integrating private credit solutions within its existing banking relationships, JPM is well-positioned to capitalize on the convergence of syndicated and direct lending markets, offering clients greater flexibility and financing options.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report State Street Corporation (STT): Free Stock Analysis Report Mizuho Financial Group, Inc. (MFG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks