NEW YORK, March 25 Northern Trust Corp (NTRS.O) has agreed to buy Omnium, a fund administration unit of hedge fund Citadel, Dow Jones Newswires reported late on Thursday, citing unnamed sources.
Omnium, set up in 2007, has $70 billion in assets under administration, according to its website.
Citadel's administration business never gained much traction in the $1.9 trillion hedge fund industry.
People familiar with the hedge fund industry said fund managers were reluctant to ink a deal that would let a subsidiary of a competitor manage and process trades. Ken Griffin's Citadel hedge fund manages about $10 billion in assets and ranks as one of the industry's largest firms.
Citadel and Northern Trust declined to comment. (Reporting by Paritosh Bansal and Matthew Goldstein; Editing by Bernard Orr)