Canadian lender Royal Bank of Canada (RBC) is set to acquire UK-based wealth manager Brewin Dolphin in an all-cash deal worth £1.6bn, on a fully diluted basis.
RBC Wealth Management, a wholly-owned subsidiary of RBC, has announced its offer price of 515 pence per share, for the entire share capital of Brewin Dolphin.
Brewin Dolphin is a provider of wealth management services in the UK and Ireland.
It operates with a network of more than 30 office locations, and has assets under management worth £59bn, as of 31 December 2021.
The transaction is anticipated to be completed by end of Q3 2022, subject to certain customary conditions, including regulatory approvals and Brewin Dolphin shareholder approval.
Upon closing, the combined company is expected to serve as a premier integrated wealth management provider to private and institutional clients.
RBC Wealth Management group head Doug Guzman said: “The UK is a key growth market for RBC, and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region.
RBC Europe capital markets and wealth management head CEO David Thomas said: “This is a transformative acquisition for RBC Wealth Management and cements RBC’s position as a market leader across multiple business platforms in the UK, the Channel Islands and Europe.”
According to RBC, the acquisition is anticipated to reduce its Common Equity Tier 1 (CET1) ratio by around 40bps and provide revenue synergies in future.
Brewin Dolphin chief executive officer Robin Beer said: “The Brewin Dolphin Board is pleased to recommend the offer by RBC in the interests of our shareholders, our clients, our people and our business partners.
“We share complementary values which emphasize the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities. Our focus will be on maintaining continuity, so that we build on what we have already achieved.”
In March last year, the Canadian bank has selected FactSet as the primary market data and technology provider for its entire wealth management business.
