Canadian bank RBC bids to buy Brewin Dolphin for £1.6bn

The deal, one of the largest seen in the UK wealth management sector, is subject to Brewin Dolphin shareholder approval and regulatory approval.

The deal is being recommended by Brewin Dolphin’s board.

Under the deal RBC Wealth Management (Jersey) Holdings Limited, a wholly owned subsidiary of RBC, has made a recommended cash offer for the entire issued share capital of Brewin Dolphin for 515 pence per share.

The price offered implies a value for Brewin Dolphin of £1.6bn. 

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If the deal goes ahead the two businesses will be combined creating a UK wealth manager expected to be the third biggest in the market. 

Brewin Dolphin is one of the major providers of discretionary wealth management in the UK and Ireland. It has more than 30 offices and Assets under Management of £59bn. 

Royal Bank of Canada has a global footprint in the wealth management sector and has 88,000 employees worldwide. It is one of Canada’s biggest bank and one of the largest banks in the world based on market capitalisation. It has 17 million clients in Canada, the USA and 27 other countries. 

Brewin Dolphin is a UK FTSE 250 company. Services include discretionary investment management, retirement planning and tax-efficient investing. Its intermediary business manages £19 billion of assets for over 1,700 advice firms either on a discretionary basis or via its Managed Portfolio Service.  

Doug Guzman, group head of RBC Wealth Management, said: “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, giving RBC Wealth Management a No. 3 market position in the UK and Ireland, in addition to being a market leader in Canada, with a growing position in the United States. 

“By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients. 

“Both management teams are excited by a shared vision of high quality client service, client-centric culture and the exceptional growth opportunities that we can deliver together. We look to continue investing in the combined business and take it to greater heights. We are confident that this acquisition will deliver benefits to our combined clients, employees and stakeholders.”

Robin Beer, chief executive officer of Brewin Dolphin, said: “The Brewin Dolphin board is pleased to recommend the offer by RBC in the interests of our shareholders, our clients, our people and our business partners. Building on the strong organic growth that we have achieved to date, the combined businesses will create an attractive platform for future growth. 

“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. We share complementary values which emphasise the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities. Our focus will be on maintaining continuity, so that we build on what we have already achieved. 

“I am looking forward to us working together to enhance our market position as a leading advice-focused, digitally enabled wealth manager.”

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