State Street has signed an initial agreement to acquire the Santander CACEIS Latam Securities Services joint venture in Brazil, Mexico and Colombia, the company announced.
The joint venture, owned by Santander Group and CACEIS, holds approximately US$470 billion in assets under custody and US$225 billion in assets under administration. According to State Street, the acquisition would expand its custody, fund administration, foreign exchange and middle- and back-office services in the three markets.
Ron O’Hanley, chairman and chief executive officer of State Street, said the transaction is intended to strengthen the firm’s local presence in the region. “Effectively serving global and regional clients in Brazil, Mexico and Colombia requires this same deep local expertise and presence,” he said.
Retain existing teams
If the transaction closes, State Street plans to retain the existing local teams and continue operating the businesses under their current market licences and regulatory frameworks.
The companies expect to enter into definitive acquisition documentation after completing consultations with relevant employee representatives. The transaction remains subject to regulatory approvals and other customary closing conditions and is not expected to close until 2027.
