Tue. Jul 5th, 2022

Royal Bank of Canada has agreed to buy Brewin Dolphin, one of the UK’s largest wealth managers, for £ 1.6bn in the latest tie-up in the British wealth sector.

RBC said on Thursday that it would pay 515p per share, a 62 per cent premium to the previous closing price, for the 260-year-old company. The bank, one of Canada’s largest lenders, said it aimed to combine Brewin with its existing UK wealth business.

RBC said the combined group would manage about £ 64bn, making it the third-largest manager in the UK and Ireland. The companies expect the deal to be completed later this year, subject to shareholder and regulatory approval.

“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,” said Doug Guzman, head of RBC Wealth Management.

There has been a wave of consolidation across the UK’s £ 1.8tn wealth management sector, as mounting technology and compliance costs heap pressure on smaller players to seek economies of scale by combining with other firms.

Brewin Dolphin is the latest British name to be snapped up by a North American buyer, after US financial group Raymond James last summer struck a deal to take over wealth manager Charles Stanley for £ 279mn.

Robin Beer, chief executive of Brewin Dolphin, said “the combined business will create an attractive platform for future growth. As part of RBC, we would be able to provide our clients with a broader range of products and services, and expand our distribution channels by leveraging RBC’s global presence. ”

Brewin Dolphin manages £ 57bn for around 80,000 clients across the UK, including individuals, charities and pensions.

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