The sale price of $2.31 billion includes the purchase of $1.57 billion of stock and repayment of intercompany debt at PNC. BNY Mellon plans to raise around $800 million in equity as part of the transaction. The all-cash acquisition is expected to close in the third quarter of this year, subject to regulatory approval.

The deal, which this publication reported was in late stage talks at the end of last month, could help PNC pay back its $7.6 billion in bank bailout funds.  

BNY Mellon, which earlier this year reported fourth quarter earnings of $712 million, will increase its market position in a number of areas and add $855 billion in assets under management through the transaction, it said in a press statement.

“We expect the transaction to accelerate our growth, deliver economies of scale and strengthen our leadership position for Asset Servicing and Pershing,” said Robert Kelly, BNY Mellon chairman and chief executive officer.

The current chief executive of GIS will remain in role and report to Tim Keaney and Jim Palermo, co-heads of BNY Mellon Asset Servicing.