Royal Bank of Canada to spend £697 million on RBC Dexia
04 April 2012 Toronto
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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.”
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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