Royal Bank of Canada agrees £1.6bn takeover of wealth manager Brewin Dolphin

Ancient UK wealth manager Brewin Dolphin has agreed to be bought by the Royal Bank of Canada in a £1.6 billion deal.

The businesses said they had reached an agreement that will see RBC paying 515p per share for the London-based business.

It is more than 60% ahead of where Brewin’s shares closed on Wednesday, at 318p. It also values the business at 2.8% of the £55 billion of assets that it manages.

Founded in 1762, Brewin Dolphin has grown to become one of the largest wealth managers in the UK.

It runs dozens of offices around the UK and works with thousands of independent financial advisers and investment directors.

If shareholders approve the deal, which Brewin directors urged them on Thursday to do, the company will fall into the hands of the younger, but larger, RBC.

It was founded in 1864 and has since grown to a market value of around £121 billion, employing 88,000 people worldwide.

RBC’s Doug Guzman said: “The UK is a key growth market for RBC and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region.”

Brewin is also a “market leader” in Canada and is growing in the US, Mr Guzman said.

“By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients,” he said.

Brewin chief executive Robin Beer said: “The Brewin Dolphin board is pleased to recommend the offer by RBC in the interests of our shareholders, our clients, our people and our business partners.

“Building on the strong organic growth that we have achieved to date, the combined business will create an attractive platform for future growth.

“As part of RBC we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC’s global presence.”