Royal Bank of Canada to spend £697 million on RBC Dexia
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Royal Bank of Canada to spend £697 million on RBC Dexia 04 April 2012Toronto Reporter: Georgina Lavers
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Royal Bank of Canada is set to spend £697 million on the acquisition of RBC Dexia Investor Services.
RBC, which already has a 50 per cent stake in the firm, will buy the other 50 per cent from Banque Internationale à Luxembourg S. A.
RBC Dexia will incur a loss from the sale of the Dexia Group securities, with RBC’s share of this loss totalling $30 million after tax.
Gordon Nixon, president and chief executive officer at RBC, said: “It is a strong business that generates stable revenue in an attractive sector that is well positioned for long-term growth, and fits well with our diversification strategy.”
Jim Westlake, group head of International Banking and Insurance at RBC said: “This is a very scalable business with leading infrastructure and processes already in place. It is well positioned to benefit from higher interest rates and an improvement in market asset values.”
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