Mellon Financial Corp. today agreed to acquire the remaining 50% of its joint venture with Russell Investment Group for an undisclosed sum, confirmed John L. Klinck Jr., Mellon vice chairman and president of its investment management unit.
"We'll be able to really advance our strategic platform between this business and the other part of Mellon," Mr. Klinck said in an interview. "We'll continue to invest and strengthen the relationship between this business and our core custody business. We've been doing that as a joint venture, and now with 100%, we can strengthen those relationships even further.
For Russell/Mellon clients, he said, "it is business as usual. The existing platform of products and services continues tomorrow just as it does today."
The acquisition was not part of a larger strategy to make the company more attractive to a potential suitor, he said. "This is not such a large transaction that it transforms Mellon," Mr. Klinck said, adding the deal has been in the works for a couple of months. "Mellon has been extremely clear about its strategy for a number of years, and this is another step along the same path."