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Trustmark (TRMK) Enters Deal to Sell Corporate Trust Business

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Trustmark Corporation’s (TRMK - Free Report) subsidiary, Trustmark National Bank, has entered an agreement to sell all the assets of its corporate trust business to The Peoples Bank, the subsidiary of Peoples Financial Corporation. The deal is expected to be completed in the second quarter of 2022, subject to customary closing conditions.

Trustmark’s corporate trust business focuses on providing a wide variety of trust and agency services in connection with debt securities issued by public corporations and government entities. By means of the deal, 200 bond issues will be transitioned to Peoples Bank.

Trustmark’s president and CEO, Duane Dewey, stated, “This transition supports our focus on strategic initiatives that will help our company grow, become more efficient and serve our customers with new and innovative products and services as we move forward. We are pleased that our Corporate Trust customers will enjoy the same level of service from The Peoples Bank’s team that they have come to expect from Trustmark.”

Chevis C. Swetman, the president and CEO of Peoples Financial, said, “We are delighted to add this additional book of corporate trust business to our existing portfolio and look forward to serving these customers. We are excited about this unique opportunity to leverage our outstanding existing corporate trust footprint.”

Over the past year, shares of TRMK have lost 5.6% against 7.9% growth of the industry.

 

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Currently, Trustmark carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Divestitures by Other Finance Companies

Recently, Affiliated Managers Group, Inc. (AMG - Free Report) announced that it entered an agreement to sell its minority interest in Baring Private Equity Asia (“BPEA”) to EQT AB, following the announcement of a combination of the companies.

The transaction is anticipated to close in fourth-quarter 2022, subject to customary closing norms. Following the closing, AMG expects to utilize around 40% of the gross proceeds to pay taxes and repay debt. The remaining 60% is expected to be used to fund a combination of growth investments and share buybacks over time.

Likewise, UBS Group AG (UBS - Free Report) announced that UBS Asset Management and its joint venture partner Mitsubishi Corporation agreed to sell its Japan-based real estate joint venture, Mitsubishi Corp.-UBS Realty Inc., to KKR & Co. Inc (KKR - Free Report) .

The transaction is anticipated to be completed in April 2022, subject to required filings and regulatory approvals.

UBS Group’s 20-year joint venture in the real estate segment with Mitsubishi will end following this divesture. The deal will bolster KKR’s presence in Japan, where it has been operating since 2006, with an increased scale in the global real estate market from $41 billion to $55 billion.