Bank of New York Mellon Corp (NYSE:BK) has reportedly approached Northern Trust (NASDAQ:NTRS) to express interest in a potential merger, according to the Wall Street Journal. While no offer was made, the CEOs of both banks are said to have engaged in early discussions.

Deal Snapshot:

• BNY Mellon's market cap: $65.55 billion

• Northern Trust's market cap: $21.76 billion

• Talks are preliminary and may not result in a transaction.

The move could significantly reshape the custody banking sector by combining two of the largest U.S.-based custodians. BNY recently received a license to set up a regional headquarters in Saudi Arabia, underscoring its ambitions to expand globally as Gulf nations ramp up efforts to become financial hubs.

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