Mergers and acquisitions  

Royal Bank of Canada to buy Brewin Dolphin for £1.6bn

Royal Bank of Canada to buy Brewin Dolphin for £1.6bn

Royal Bank of Canada is to buy wealth manager Brewin Dolphin for approximately £1.6bn, subject to regulatory approval.

RBC Wealth Management (Jersey) announced today (March 31) that it is buying Brewin Dolphin for 515 pence per share, implying an equity value of approximately £1.6bn (C$2.6bn). 

The deal is subject to shareholder and regulatory approval, and RBC anticipates it will complete in the third quarter this year.

Brewin Dolphin currently has a network of more than 30 offices and assets under management of £59bn as at December 31, 2021. 

Robin Beer, chief executive officer of Brewin Dolphin, 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. Building on the strong organic growth that we have achieved to date, the combined businesses will create an attractive platform for future growth.”

Beer said as part of RBC, Brewin would be able to provide clients with a broader range of products and services, and expand its distribution channels through RBC's global presence. 

“We share complementary values which emphasise the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities,” he said. 

“Our focus will be on maintaining continuity, so that we build on what we have already achieved. I am looking forward to us working together to enhance our market position as a leading advice-focused, digitally enabled wealth manager."

Meanwhile, Doug Guzman, head of RBC Wealth Management, said the UK is a “key growth market” for RBC, and Brewin provides RBC with a platform to transform its wealth management business in the region.

“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,” he said.

“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 said it believes the combined wealth management business in the UK, Ireland and Channel Islands can generate a pre-tax profit of C$500mn (£304mn).

David Thomas, CEO of RBC Capital Markets Europe, added: “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. 

“We look forward to welcoming Brewin Dolphin’s employees and clients and working together to leverage RBC’s global reach and significant capabilities to create new opportunities for the combined business to grow.”

sonia.rach@ft.com, sally.hickey@ft.com

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