BNY Trust Co. Canada Acquiring Corporate-trust Business of CIBC Mellon

Once the deal closes at the end of the next quarter, BNY Trust Co. of Canada will more than double the amount of outstanding debt it services in Canada after acquiring the corporate-trust business of CIBC Mellon.

That will bring the total to about $287.58 billion of Canadian debt serviced by the company.

Jerome Dwight, head of BNY Trust Co. of Canada, said this about the transaction:

"We're excited about the prospects of expanding our franchise here.

"The acquisition makes BNY Trust of Canada the largest trustee, paying agent and administrator of cross-border debt issuances, asset-backed securities and government-sponsored infrastructure programs."

BNY Mellon is evidently in an expansion mode, as early in the month they made another major acquisition, that being the back-office business of PNC Financial Services Group, which they bought for $2.3 billion. The opportunity arose because PNC had to raise money to pay back funds received from the Troubled Asset Relief Program (TARP).

BNY Mellon CEO Robert Kelly is remaining focused on his stated goal of increase its core business assets. With this acquisition it'll make the company the second-largest provider in accounting for funds, administration and transfer agency, as well as the third-largest provider in assets for mutual and hedge funds.

This definitely coincides with the core business of BNY Mellon, which is the largest asset custodian in the world with over $22 trillion under  management. They also service another $12 trillion in outstanding debt.

They make money from the fees they charge for the various related services they offer.