Royal Bank of Canada (RBC) has announced it will be acquiring full control of RBC Dexia Investor Services.
The Canadian institution announced the move overnight, saying it would acquire the 50 per cent stake in RBC Dexia it did not already own from Banque Internationale à Luxembourg for more than $1.1 billion in cash.
RBC president and chief executive Gordon Nixon said full ownership of RBC Dexia would allow the company to leverage its reputation and financial strength to drive growth.
He said RBC Dexia represented a strong business that generated stable revenue in an attractive sector and was well positioned for long-term growth.
RBC group head of international banking and insurance Jim Westlake said RBC Dexia Investor Services represented a very scalable business.
He said it was well positioned to benefit from higher interest rates and an improvement in market asset values.
It is not yet clear how the transaction will impact RBC Dexia’s Australian operations.
