Royal Bank of Canada has made an agreed £1.6 billion all cash offer for British wealth manager Brewin Dolphin, the bank said today.
Brewin shareholders will be offered 515 pence per share, RBC said in a statement, representing a 62% premium on yesterday's closing price of 318 pence.
That values Brewin Dolphin at 2.8% of its £55 billion in assets under management as of February 28, RBC added.
Directors of Brewin Dolphin have given unanimous backing for the deal, which is expected to complete at the end of the third quarter of this year, RBC 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," said David Thomas, CEO of RBC Capital Markets Europe.
The combination would make RBC Wealth Management the third biggest wealth manager in Britain and Ireland as well as a market leader in Canada and with a growing position in the US, Thomas 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's CEO Robin Beer said.
