BNY Mellon (BK) Plans to Divest Canada Unit to Computershare

Core Viewpoint - The Bank of New York Mellon Corp. has agreed to divest BNY Trust Company of Canada to Computershare, aligning with its strategy to expand in foreign markets while Computershare aims to enhance its corporate trust business in North America [1][2]. Company Summary - The divestiture is expected to be completed in the second quarter of 2024, pending customary and regulatory approvals, with financial terms undisclosed [1]. - BNY Trust Company of Canada, established in 2001, provides a variety of trust and agency services to clients in Canada, managing approximately 1,800 corporate trust mandates [1]. - All relevant staff will transition to Computershare, ensuring a smooth business and employee transition [2]. - BNY Mellon remains focused on strategic acquisitions and divestitures to penetrate overseas markets and improve profitability, having previously divested BNY Alcentra Group Holdings in 2022 and acquired Optimal Asset Management in 2021 [2]. Industry Context - Other financial services firms are also pursuing similar divestiture strategies, such as HSBC's sale of its Argentina business for $550 million to focus on Asian operations, incurring a$1 billion pre-tax loss [5]. - Goldman Sachs completed the sale of GreenSky, a home-improvement lending platform, as part of a major restructuring initiative, having acquired it for $1.7 billion in 2022 [6].