Royal Bank of Canada Wealth Management is to acquire London-based BlueBay Asset Management for £963m.
BlueBay shareholders will receive 485p per share from Canada’s biggest bank by market size.
This is a 29 per cent premium on the 375p-a-share price which the stock ended up at when the markets closed on Friday last week.
BlueBay, a Mayfair-based fixed-income and debt funds specialist, will retain investment autonomy and will still operate independently following RBC’s £963m acquisition.
Oriel Securities analyst Keith Baird said in a morning report that the offer was likely to be accepted. Commenting on the £963m deal, Baird says: “This price looks very full and may not leave room for any counter-bidders.”
The group’s shares surged by 30 per cent from Friday’s market close when the news was announced on Monday, jumping from 375p a share to 488p in morning trading.
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.”