State Street (NYSE:STT) stock surged 7.8% in Wednesday premarket trading after it and Brown Brothers Harriman & Co. mutually agreed to terminate State Street’s proposed acquisition of BBH. They came to the agreement after considering regulatory feedback and potential changes to the deal to address that feedback.
“State Street (STT) has determined that the regulatory path forward would involve further delays, and all necessary approvals have not been resolved,” the company said. “The proposed modified transaction structure was increasingly complex, presented additional operational risk to State Street and would limit the anticipated transaction benefits relative to original expectations.”
Even without the acquisition, State Street (STT) Chairman and CEO Ron O’Hanley said he’s confident in the “organic growth trajectory of our business. We will continue to be deliberate in managing our capital in the best interest of our shareholders.”
The transaction agreement didn’t require STT or BHH to pay any penalty in connection with the termination.
