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Royal Bank of Canada buys Brevin Dolphin capital manager for £ 1.6 billion

This is just the latest flurry of activity in the growing capital management space when firms flock to advise retirees Baby boomers about how to dispose of your money.

Brevin, a feature of Square mile since 1762 has assets of £ 50 billion under management and 80,000 customers.

A few years ago it moved from stockbroking to capital management and has offices in the richer areas of the UK.

RBC offered 515 pensions per share, which is more than 60% higher than Brevin’s price before the deal.

RBC will merge Brewin with the existing UK division, which is currently a small player.

Last year, the American financial group Raymond James bought Charles Stanley, a competitor of Brewin, for 279 million pounds.

Peel Hunt said in a note to customers: “Although Brewin will initially be managed as a separate subsidiary, over time it is expected that the two brands will be merged. There is no accurate information on cost synergies, but it will be

some overlap, and therefore some limited reduction is expected. “

The broker added: “In our view, this is an attractive price for Brewins, especially given the current market conditions.”

Brewin CEO Robin Beer said: “As part of RBC, we will be able to offer our customers a wider range of products and services.”

More major banks, particularly Lloyds, also plan to expand into the capital management sector.

RBC, founded in 1864, has 88,000 members worldwide.

Doug Guzman of RBC said: “The UK is a key growth market for RBC, and Brewin Dolphin provides us with an exceptional platform to substantially transform our capital management business in the region. By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a leading provider of integrated capital management for private and institutional clients. ”

Royal Bank of Canada buys Brevin Dolphin capital manager for £ 1.6 billion

Source link Royal Bank of Canada buys Brevin Dolphin capital manager for £ 1.6 billion

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