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Royal Bank of Canada agrees to buy Brewin Dolphin for £1.6 billion

By Stephen Emerson
31 March 2022

Royal Bank of Canada (RBC) has agreed a deal to takeover wealth manager Brewin Dolphin in a deal worth £1.6 billion.

The acquisition values Brewin Dolphin, which has £55.0 billion assets under management, shares at 515 pence each which represents a 62 per cent premium on the closing price of 318 pence per share on March 30 this year.

Brewin Dolphin has South East offices in in Oxford, Winchester, Royal Tunbridge Wells, Marlborough and Gatwick with RBC vowing to maintain the wealth manager's local footprint and review locations where there is overlap with its current operations.

The deal, subject to shareholder approval, is expected to be completed in the third quarter of 2022.

Doug Guzman, Group Head, RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services, 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, giving RBC Wealth Management a #3 market position in the UK and Ireland, in addition to being a market leader in Canada, with a growing position in the United States. By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients.

"Both management teams are excited by a shared vision of high quality client service, client-centric culture and the exceptional growth opportunities that we can deliver together. We look to continue investing in the combined business and take it to greater heights. We are confident that this Acquisition will deliver benefits to our combined clients, employees and stakeholders."

RBC say the acquisition will allow a merger of its existing operations within the UK with that of Brewin Dolphin to create a market leader with an annual revenue of £545 million based on 2021 figures.

The Canadian banking giant employs 88,000 people across 27 countries and for the year ending October 2021 reported total revenues of C$49.7 billion and net income of approximately C$16 billion.

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