Financial services provider Computershare has received takeover approval to close the acquisition of rival BNY Mellon Shareowner Services.
The share registry giant will now proceed to integrate its largest transaction of all time.
Computershare has received the required antitrust approvals and prior to the close of the acquisition, it will be working closely with BNY Mellon to ensure a smooth transition, says the Melbourne-headquartered transfer agency.
‘This is a huge step in one of the most important acquisitions in Computershare’s history,’ says Stuart Crosby, CEO and president of Computershare. ‘Now we can concentrate on closing this transaction and commence the integration of BNY Mellon’s Shareowner Services business into Computershare.’
After making previous transactions of a similar nature, such as Equiserve and Georgeson Shareholder Services, Computershare says it is well prepared to handle another large-scale acquisition.
As Corporate Secretary previously reported, Russell Gill, an Australian-based JPMorgan equity research analyst, says ‘this transaction (if successful) would be a game changer for Computershare and the US transfer agent market structure.’ He adds that the move will ‘essentially double Computershare’s scale while removing a competitor from the marketplace, reminiscent of the Equiserve transaction back in late 2004.’ According to the analyst, BNY Mellon, Computershare, Wells Fargo and American Stock Transfer are all currently seen as industry heavyweights and the US transfer agent market remains a competitive place.
[Article by Aarti Maharaj, Corporate Secretary]