JPMorgan Worldwide Securities Services, the global custody and fund services division of JPMorgan, will acquire the €200 billion ($316 billion) institutional global custody business of Nordea, said Birger Gezelius, Nordeas head of financial institutions. Nordea a financial services company based in Stockholm is the largest Nordic institutional global custodian. As part of the deal, Nordea will appoint JPMorgan as global custodian of assets managed by Nordea Funds and Nordea Life & Pensions.
As we looked into the future, we can clearly see that we dont have a sustainable global position when we are up against a consolidating marketplace, Mr. Gezelius said in a telephone interview. Theres only a handful of global players with such a commanding position that its difficult for any medium-size bank to compete.
JPMorgan has $15.9 trillion in assets under custody. Nordea will retain its subcustody business, which offers regional custodial services to international customers who invest in Nordic countries. About half of the approximately 100 employees in Nordeas institutional global custody division will move to JPMorgan within the next 12 to 18 months. We dont foresee any redundancies, Mr. Gezelius said.
The transaction is expected to close in the third quarter. Financial terms were not disclosed.