RBC has agreed to acquire City National, a Los Angeles-based private and commercial bank, for US$5.4 billion.
“In line with RBC’s strategic goals, we believe this combination creates a powerful expansion platform for focused long-term growth in the country which we view as our second home market,” says RBC president and CEO Dave McKay.
City National serves high net worth and commercial clients across a number of the largest U.S. metropolitan areas, including New York, Los Angeles, the San Francisco Bay area and Orange County. Its commercial banking specialties include a position in the entertainment industry and an emerging presence in the technology and healthcare segments.
“City National’s private banking and wealth management capabilities will enable us to offer a broader product suite to the 340,000 U.S. households served by our U.S. wealth management unit,” McKay adds.
Following the closing of this transaction, RBC will combine its U.S. wealth management unit with City National, under the leadership of City National chairman and CEO Russell Goldsmith, with the combined unit being reported as part of the global RBC Wealth Management segment.
The deal is expected to close in the fourth quarter of 2015 and is subject to customary closing conditions, including receipt of required regulatory approvals and the approval of City National’s shareholders.
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