RBC set to acquire UK wealth management firm Brewin Dolphin in £1.6bn deal
Royal Bank of Canada (RBC) is set to acquire London-based Brewin Dolphin as it looks to expand into the UK wealth management market.
RBC’s subsidiary RBC Wealth Management has made a cash offer for the entire issued and to be issued share capital of Brewin Dolphin at 515p per share, valuing the company at £1.6 billion.
The deal is subject to shareholder and regulatory approval and is expected to be completed by the end of Q3 2022.
Brewin Dolphin is a provider of discretionary wealth management in the UK and Ireland with a network of more than 30 offices and assets under management of £59 billion as of 31 December 2021.
Doug Guzman, who heads up RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services, says: “The UK is a key growth market for RBC, and Brewin Dolphin provides us with a platform to transform our wealth management business in the region, giving RBC Wealth Management a #3 market position in the UK and Ireland.”
RBC believes that its combined wealth management business in the UK, Ireland and Channel Islands could generate revenue at a compound annual growth rate (CAGR) of approximately 9% and achieve adjusted profit before tax of around £305 million (CAD 500 million).
Brewin Dolphin CEO Robin Beer adds: “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.”