Royal Bank of Canada Wealth Management is to acquire BlueBay Asset Management for £963m.
BlueBay shareholders will receive 485p per share, a 29 per cent premium on its share price at close of markets on Friday.
BlueBay, a fixed income and debt funds specialist, will retain investment autonomy and operational independence following the deal.
RBC Wealth Management group head George Lewis says: “This acquisition will further RBC’s strategy to leverage our position as a top 10 global wealth manager, and continue to expand our asset management solutions for the benefit of our clients around the world. BlueBay is an ideal fit with RBC’s growing asset management business and we are confident that this transaction will benefit clients, employees and shareholders of both firms.”