GERMANY - BNY Mellon has agreed to acquire German custodian BHF Asset Servicing and its fully-owned fund administration affiliate Frankfurter Service Kapitalanlage-Gesellschaft.

The €253m transaction with BHF-Bank and Sal Oppenheim follows a cooperation deal between BHF Asset Servicing and BNY Mellon last year, and is expected to close in the third quarter, subject to regulatory approval.

The purchase increases BNY Mellon's assets under custody and administration to €473bn along with an administration and a depotbanking volume of €120bn in Germany - making it the second-largest asset service provider in the market.

BNY Mellon claimed the move broadens its capabilities in "the provision of German domestic custody and [as] KAG fund administration".

The custodian's German operations will be headquartered in Germany with 340 staff and will be headed by Michelle Grundmann from BNY Mellon, alongside Juergen P. Frank and Christopher V. Friedrich from BHF Asset Servicing.

They will report to Nadine Chakar, head of EMEA at BNY Mellon Asset Servicing.

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