Royal Bank of Canada (RBC) is set to acquire London-based Brewin Dolphin as it seeks to expand into the UK wealth management market.
The deal values Brewin Dolphin at £1.6bn
RBC subsidiary RBC Wealth Management has made a cash offer for all of the issued and to be issued share capital of Brewin Dolphin at 515p per share, valuing the company at £1.6bn.
The deal is subject to shareholder and regulatory approvals and is expected to be finalized by the end of the third quarter of 2022.
Brewin Dolphin is a provider of discretionary wealth management in the UK and Ireland with a network of over 30 offices and assets under management of £59 billion as of December 31, 2021.
Doug Guzman, who heads RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services, said: “The UK is a key growth market for RBC, and Brewin Dolphin gives us a platform to transform our wealth management business. in the region, giving RBC Wealth Management a #3 market position in the UK and Ireland.
RBC estimates that its combined wealth management businesses in the UK, Ireland and the Channel Islands could generate revenue at a compound annual growth rate (CAGR) of around 9% and achieve adjusted profit before tax approximately £305 million (C$500 million).
Brewin Dolphin CEO Robin Beer added, “As a member of RBC, we would be able to provide our customers with a wider range of products and services and expand our distribution channels by leveraging advantage of RBC’s global presence.
