The transaction is expected to be completed by end of Q3 2022
Royal Bank of Canada to acquire one of the UK’s largest wealth managers. Source: depositphotos.com
Royal Bank of Canada has announced the acquisition of UK-based Brewin Dolphin for approximately £1.6 billion on a fully diluted basis.
Brewin Dolphin is one of the UK’s leading independent providers of discretionary wealth management in the UK and Ireland. It has a network of over 30 offices and Assets under Management of £59 billion as of December 31, 2021.
The acquisition is anticipated to result in a ~40 bps reduction in RBC’s Common Equity Tier 1 (“CET1”) ratio at the Effective Date. RBC believes that the acquisition will result in an adjusted EPS accretion for RBC of ~1% in the first year following the Effective Date excluding the benefit of future revenue synergies.
Over the medium-term RBC believes that the combined wealth management business in the UK, Ireland and the Channel Islands can generate a revenue CAGR of ~9% and achieve adjusted profit before tax of ~C$0.5 billion including the benefit of cost and revenue synergies.
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