Bank of New York Mellon is exploring the sale of its corporate trust arm as it seeks to retreat from a business that has become less profitable since the financial crisis, people with knowledge of the matter said.
Bloomberg News reports that BNY Mellon, the world’s largest custody bank, is working with Goldman Sachs to find buyers for the unit, which could fetch at least $2.5bn, said one of the people, asking not to be identified because the matter isn’t public.
The company has begun contacting potential buyers and is expected to begin soliciting offers in about a month, the people said.
The corporate trust arm helps companies such as United Technologies and Volkswagen Financial Services process payments on debt they issue, and helps investors recover their money if companies default. With 3,500 employees at 61 offices around the world, the unit services about $12tril in outstanding debt for its clients, according to BNY Mellon’s website.
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