State Street Acquires Mizuho's Global Custody Business

State Street Corp. has signed an agreement to acquire Mizuho Financial Group's global custody services outside Japan. This strategic move could influence stock prices positively for both companies if regulatory approvals are met.

Date: 28-02-2025

AI Rating: 6

Acquisition Details: State Street Corp. has announced an agreement to acquire Mizuho Financial Group's global custody and related businesses outside Japan, amounting to oversight of approximately $580 billion in assets under custody and $24 billion in assets under administration. Although the financial terms are undisclosed, the expected completion of the transaction by the fourth quarter of 2025 introduces an element of uncertainty until regulatory approvals are obtained.

Market Response: Following the announcement, State Street shares closed 0.20% higher at $97.52, and saw an increase of 2.54% in after-hours trading, closing at $100. Mizuho Financial also experienced a positive response in the market, closing at $5.69 and increasing to $5.77 in after-hours trading.

Both companies’ stock prices may experience upward momentum due to the anticipated benefits of the acquisition once completed. Mizuho's partnership with State Street for global custody is beneficial, as it allows Mizuho to leverage its expertise for local assets while State Street gains a foothold in the custody market outside Japan. However, the lack of disclosed financial terms and pending regulatory approvals create potential risks that investors should watch for concerning stock performance.

Stocks: STT MFG