The plans for the acquisition were announced in January this year, when both the banks have reached a merger agreement.
RBC agreed to pay close to $47.25 in cash and 0.7489 of an RBC common share for each share of City National common stock.
Based in Los Angeles, City National provides banking services to high net worth and commercial clients across a number of the largest and most attractive US metropolitan areas, including New York, Los Angeles, the San Francisco Bay Area and Orange County.
RBC president and CEO Dave McKay previously said: "In line with RBC’s strategic goals, we believe this combination creates a powerful expansion platform for focused long-term growth in the country which we view as our second home market.
"City National serves high net worth and commercial client segments in select high-growth markets, and represents a unique opportunity to complement and enhance our existing US businesses and product offering."
Expected to be completed in November this year, the deal will enhance RBC’s US presence and accelerates franchise growth.
Upon completion of the acquisition, RBC will combine its US wealth management unit with City National. The combined unit will be led by City National chairman and CEO Russell Goldsmith.
With the addition of City National’s private banking and wealth management capabilities, RBC will be able offer a wide product portfolio to the 340,000 households served by its US wealth management unit.
RBC’s operations in the US will have consolidated assets worth $172bn, which represent less than 1 percent of the total assets of insured depository institutions in the country.
RBC currently employs 8,000 people across the US, including more than 3,000 in New York. It provides retail and commercial banking, wealth management, insurance, investment banking, and transaction-processing services.
Image: RBC’s office in Ottawa. Photo: courtesy of Peregrine981 / Wikipedia.
