BNYMellon will cut 20% of locally-based PNC group

Bank of New York Mellon Corp. confirmed this morning it will buy PNC Financial Service Group's Global Investment Services Unit (which processes payments for thousands of investment funds) for $1.57 billion in cash, plus $740 million to pay debt the group owns PNC.

PNC GIS employs around 4,450 accounting, information technology and support staff at its Wilmington headquarters and offices in Philadelphia, the King of Prussia and Princeton areas, and other sites in the US and Europe. BNY says it will cut 20% of the group's expenses by 2012, shaving $120 million from operating expenses. Sales for the group total $810 million/year.

Release here. More info in 9 am conference call, link here.