U.S. Bank to acquire Debt Servicing and Securities Custody Services client portfolio of MUFG Union Bank

By Pavithra R

U.S. Bank, the fifth-largest bank in the country has announced entering into a definitive agreement to acquire the Debt Servicing and Securities Custody Services client portfolio of MUFG Union Bank, N.A. The transaction is expected to close in the first quarter of 2021, subject to regulatory approval and customary closing conditions.

Under the terms of the deal, U.S. Bank will acquire approx. 600 client relationships and $320 bn in assets under custody and administration.

“This transaction is a great fit for U.S. Bank. We are thrilled to have the opportunity to increase our presence on the West Coast and solidify our position as a leading provider of corporate trust, institutional trust and fund custody services,” said Gunjan Kedia, vice-chair, U.S. Bank Wealth Management and Investment Services.

“U.S. Bank is known for working with clients one-on-one to understand their unique requirements and deliver customized, proactive solutions that help them meet their objectives. We look forward to putting the resources of U.S. Bank to work for our new clients and providing an exemplary client experience,” added Kedia.

U.S. Bank’s Investment Services division has more than $7.7 tn in assets under custody and administration globally. Besides offering global corporate trust and custody services, the bank also offers alternative investment and fund custody and administration services.

“After a thorough analysis of our market position in the Debt Servicing and Securities Custody product areas, we made the decision to sell these products and services within our Transaction Banking portfolio, which will enable us to reinvest capital in other strategic areas of focus to the benefit of our clients and MUFG Union Bank. For those client relationships that are being acquired, we are confident that U.S. Bank will deliver high-quality service and support,” said Ranjana Clark, head of Global & Americas Transaction Banking and Bay Area President.

Established in 1863, U.S. Bancorp with more than 70,000 employees and $540 bn in assets as of Sept 30, 2020, is the parent company of U.S. Bank National Association, one among the largest commercial bank in the United States.