US/GERMANY- Deutsche Bank is expected to announce tomorrow that it is in exclusive negotiations with Boston-based State Street over the sale of its global securities services business.

State Street is looking to buy Deutsche’s custody business and its securities lending and fund administration units. The WM Company, which carries out Deutsche’s performance and analytics work, is expected to be included in the sale.

State Street has fought off competition from a shortlist that included the Bank of New York and ABM Amro Mellon. Sources close to the deal say the negotiations are likely produce a definitive agreement to buy the business. Neither party would comment on the deal.

Speculation about the asking price has varied between e1bn and e1.5bn, but a final figure is likely to be nearer the latter.

State Street is the third largest securities services group with $6.2trn under custody while Deutsche comes in at fifth with assets of $4.8trn, based predominantly in Germany and the US.

Deutsche Bank chairman Josef Ackermann, who succeeded Rolf Breuer recently, put the custody business up for sale earlier this year after he announced Deutsche would dispose of unprofitable assets and those not part of the core banking and asset management business.