State Street Corporation has completed the acquisition of Mizuho Financial Group’s global custody and related businesses outside of Japan.

The US financial services group has taken on Mizuho’s offshore securities services businesses, including global custody services, Cayman, Bahamas and Luxembourg-domiciled cross-border fund servicing, a European securities agency business, and sub-custodian and securities lending services in the United States.

These businesses, which were organized in the Mizuho Trust & Banking ( Luxembourg ) and Mizuho Bank ( USA ) entities, support the overseas investments of Mizuho’s clients mainly domiciled in Japan, representing approximately US$580 billion in assets under custody and US$24 billion in assets under administration.

“Since we announced the transaction in February this year, we have been collaborating very closely with our colleagues of Mizuho in analyzing their offshore securities servicing model to ensure a seamless transition for Mizuho’s clients,” says Joerg Ambrosius, president of investment services at State Street. “Mizuho’s decision to entrust State Street with their valued clients affirms their confidence in our dedication to product innovation and high-quality client service. We will continue to invest and strengthen our servicing capability as part of our commitment to the Japanese market. Our enhanced presence in Japan and Luxembourg will further our growth ambitions in these important markets.”

Welcoming the close of the transaction, Tsutomu Yamamoto, senior managing executive officer, head of global transaction banking unit, at Mizuho, says: “We believe State Street’s global scale and capabilities will continue to support our clients’ offshore investments.”

Mizuho will continue to provide Japanese clients with trust and custody services for domestic assets and will collaborate with State Street for global custody and related services.

State Street has operated in Japan for more than 35 years, with more than 500 employees across Tokyo and Fukuoka. The company offers Japanese institutional investors with a comprehensive suite of services, including trust, global custody, middle/back office outsourcing, data management, as well as trading and financing solutions. 

 Its operational centre of excellence in Fukuoka has supported clients in Japan and across Asia-Pacific for over a decade. State Street has also been present in Luxembourg for 35 years, providing services including fund administration, custody, and transfer agency. Headquartered in Boston, Massachusetts, State Street operates in more than 100 geographic markets worldwide.