Canadian big six banking group is to acquire independent advisory firm Brewin Dolphin
RBC is to expand the power of its wealth management business with a transformative acquisition in the UK.
It will acquire Brewin Dolphin, a leading independent discretionary wealth manager in the UK and Ireland through its wholly owned subsidiary RBC Wealth Management (Jersey) Holdings Ltd.
It will put RBC in third place in the region by market share when the deal closes, likely to be by the end of the third quarter of 2022.
"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, group head, RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services.
The equity value of the deal is around $2.6 billion (GBP £1.6bn) and is subject to the usual shareholder and regulatory approvals.
"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,” added David Thomas, CEO, RBC Capital Markets Europe and Head, Wealth Management. “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."
Benefits of scale
Brewin Dolphin is a wealth management firm with around £59 billion ($97bn) AUM at December 31, 2021.
It is one of the UK’s oldest financial firms, founded in 1762, and has around 2,000 employees across 34 offices. It’s listed on the FTSE 250.
Although it has been proudly independent of a corporate group, CEO Robin Beer says there are advantages to being part of RBC.
“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,” he said. “We share complementary values which emphasize the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities.”
