Agreed deal

RBC in £1.6bn swoop on wealth manager Brewin Dolphin

Robin Beer
Robin Beer: attractive platform

RBC Wealth Management, a subsidiary of Royal Bank of Canada, is buying UK wealth manager Brewin Dolphin in a £1.6bn agreed deal.

The deal is worth 515p a share, a 62% premium to Wednesday’s closing price. RBC added that it expected “limited” job losses in “functional and administrative areas”.

Brewin Dolphin directors have unanimously backed the deal, which is expected to complete at the end of the third quarter.

Shares in Brewin Dolphin rocketed 194p (61.01%) at the close to 511.5p .

Robin Beer, chief executive 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.”

Brewin Dolphin is one of the UK’s largest independent providers of discretionary wealth management in the UK and Ireland, with a network of more than 30 offices and assets under management of £59bn as at 31 December.

Mr Beer added: “Building on the strong organic growth that we have achieved to date, the combined businesses 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 through leveraging RBC’s global presence.

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

Doug Guzman, group head at 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 number three 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.”

David Thomas, CEO, RBC Capital Markets Europe and Head, Wealth Management 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.”

Founded in 1864, RBC is a top 15 global financial services company, listed on the Toronto and New York Stock Exchanges with a market capitalisation of approximately C$198 billion (approximately £121 billion).

RBC employs over 88,000 employees who serve 17 million clients in Canada, the US and 27 other countries. For FY2021 ended 31 October 2021, RBC reported total revenues of approximately C$49.7 billion and net income of approximately C$16 billion.

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