Decision Nº M/07/042 from Competition and Consumer Protection Commission, 2007-08-27

• Jurisdiction: Ireland
• Parties: ABN AMRO Mellon Global Securities Services B.V.,Mellon Bank N.A.
• Date: 27 August 2007
• Decision Date: 27 August 2007
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/07/042

Merger Notification M/07/042 – Mellon/AAMGSS

1

DETERMINATION OF MERGER NOTIFICATION M/07/042 –

MELLON/AAMGSS

Section 21 of the Competition Act 2002

Proposed acqui sition by Mellon Bank N.A. of ABN A MRO Mellon Glob al

Securities Services B.V.

Dated 27/08/07

Introduction

1. On 1 August 2007 the Competition Authority (“the Authority”), in

accordance with section 18(1)of the Competition Act, 2002 (“ the Act”)

was notified, on a mandatory basis, of a prop osal whereby Mellon Bank

N.A. (“Mellon”) would acquire 50% of the issued share ca pital of ABN

AMRO Mellon Global Securities Services B.V. (“AAMGSS”) from ABN

AMRO Bank N.V. (“ABN AMRO”).

2. AAMGSS is a non full function joint venture ow ned 50% by Mello n and

50% by ABN AMRO. Post acquisition AAM GSS will come under the sole

control of Mellon and the joint venture w ill terminate.

The Undertakings Involved

3. 0n 31 May 2007 the Authority approved the merger of Mellon Financial

Corporation (“MF C”) with the Bank of New York (“BNY”) to form Bank

of New York Mellon (“BNYM”)

1

. Mellon, the acquirer, is now a whol ly

owned subsidiary of BNYM. In Ireland BNYM generated an estimated

turnover of approximately €[.] million for the year ending December

2006

2

.

4. This turnover was generated t hrough the fund administration and

asset servicing activities of

3

:

• Mellon trustee Ltd.;

• Mellon Fund Administration Ltd.;

• Pershing Securities (International Ltd.);

• BNY Fund Services (International) Ltd.;

• BNY Trust Company (Ireland) Ltd; and,

• BNY Alcentra Group Holdings, Inc.

5. AAMGSS, the target, is a provider of global custody and custody

related services to institutional investors worldwide. The target has

offices in Amsterdam, London, Fran kfurt, Luxembourg, Singapore and

Beijing and in the financial year to December 2006, AAMGSS

generated a worldwide turnover of approximately €[.] million of which

1

For details see M/07/018, BNY/Mellon.

2

This combined turnover is est imated from the separately reported turnovers of MFC and BNY for the

financial year ending December 2006.

3

In addition BNYM holds a 19.9% stake in Hamon I nvestment Group Pte Ltd., Singapore which is a

wholly owned subsidiary of Hamon Ireland Ltd.