Royal Bank of Canada to Buy City National for $ 5.4 Billion

Royal Bank of Canada to Buy City National for $ 5.4 Billion

Royal Bank of Canada to Buy City National for $ 5.4 Billion

Royal Bank of Canada acquires City National for 5.4 Billion. City National is a wealth management company and lender serves high net worth individuals and businesses. RBC, based in Toronto, has about 8 000 offices around the U.S. with 78 000 employees.

 After close the deal, which is expected in the fourth quarter, City National will be combined with U.S. Welath mangaement unit of RBC.

 RBC will pay $ 2.7 Billion in cash and about 44 million shares of RBC. Its with 25.8 percent premium over closing price on Wednesday.

 While the focus will be organic growth in the near term, we would expect – RBC – to use the City National…platform to make further acquisitions” in the U.S., wrote Mario Mendonca of TD Securities in a research client note.

 City National has $32.6 Billion in assets and manages or administers 60.8 Billion in investment assets of its clients. It runs 75 branches in New York, San Francisco, Atlanda and other cities.

 City National is known for its connections to Hollywood and Broadway. In addition to its roster of celebrity clients, Mr. Goldsmith between 1986 and 1994 headed up Republic Pictures Corp., an independent production and distribution company.

 City National Corp shares rose up at $ 14.11 to $ 88.68 on Thursday. RBC shares fell $ 1.28 to $ 60.26.

Mr. Stakebay says:

 This deal helps RBC to focus on high net worth clients, businesses and commercial segmetn in key U.S. markets and accelerates franchise growth. Compelling RBC’s U.S. Wealth Management and Capital Markets businesses, creates a powerful expansion platform for long-term growth. of businesses and earnings.

 

ROYAL BANK OF CANADA

CITY NATIONAL

Revenue

C$ 34.108 Billion (2014)

$ 1.178 Billion (2014)

Operating income

C$  14.116 Billion (2014)

$ 823.715  Billion (2014)

Profit

C$  9.004 Billion (2014)

$  232.516 Million (2014)

Total assets

C$ 940.550 Billion (2014)

$  29.717 Billion (2014)

Total Equity

C$ 54.503 Billion (2014)

$  2.740 Billion (2014)

Employees

78 000 (2014)

3417 (2014)

President and CEO of Royal Bank of Canada………….Dave McKay………2014 – present…..C$ 5 545 151 (2014)

Chairman and CEO of City National Corporation…….Russel Goldsmith…..1995 – present ….C$ 6 324 271 (2014)

You Might Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>