The Royal Bank of Canada’s (RBC’s) move to take full control of global custody, fund and pension administration services provider RBC Dexia Investor Services has been approved in Europe.
The European Commission said it cleared the acquisition under the EU Merger Regulation.
RBC Dexia Investor Services is a joint venture between RBC and Banque Internationale à Luxembourg, which was previously called Dexia Banque Internationale à Luxembourg.
RBC and Banque Internationale each own 50 percent of the business, but the French-Belgium bank was reportedly forced to sell its stake after it fell victim to the European debit crisis and the 2008 credit crisis.
RBC announced its intention to buy Banque Internationale’s 50 percent stake in RBC Dexia in October 2011 and signed a definitive agreement to do so in April 2012. RBC paid €837.5 million (C$1.1 billion) to take full control of RBC Dexia.
Speaking at the time that the deal was announced, Gordon M Nixon, who is president and CEO of RBC, said: “We have developed an in-depth understanding of the global custody business' strong fundamentals and opportunities for growth through our longstanding Canadian custody operations and more recently, through the RBC Dexia joint venture.”
“The transaction … has significant strategic value to us, not only as a standalone business but also in its complementary capabilities to RBC.”
“Full ownership of RBC Dexia will allow us to leverage RBC's excellent reputation and financial strength to win additional business and drive growth,” added Jim Westlake, the group head of international banking and insurance at RBC.
The European Commission said the operation was examined under the simplified merger review procedure.
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