Royal Bank of Canada acquires Brewin Dolphin

RBC said that it would pay 515p per share, a 62% premium to the previous closing price, in an all-cash offer. The bank said it would combine Brewin with its existing UK wealth business. This enlarged group would manage about GBP 64 billion.

There has been a wave of consolidation across the UK’s wealth management sector, as mounting technology and compliance costs heap pressure on smaller players to seek economies of scale by combining with other firms.

Brewin Dolphin manages about GBP 55 billion for around 80,000 clients across the UK and Ireland, including individuals, charities, and pensions.

The companies expect the deal to be completed later in 2022, subject to shareholder and regulatory approval.