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RBC buying City National for about $5.4B

Jan. 22, 2015 7:26 AM ETRoyal Bank of Canada (RY) Stock, RY:CA StockCYN-OLD, RYBy: Stephen Alpher, SA News Editor
  • Royal Bank of Canada (NYSE:RY) agrees to buy Beverly Hills-based City National Corporation (NYSE:CYN) - a private and commercial bank serving high net worth and commercial clients - in a deal valued at about $5.4B, or $93.80 per share. City National owners will receive $47.25 in cash and 0.7489 of a share of RBC for each share of CYN they own.
  • RBC CEO Dave McKay: "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."
  • Following the deal, RBC will combine its U.S. wealth management operation with City National, and the merged unit will be led by City National CEO Russell Goldsmith.
  • The deal is expected to be accretive to EPS in the latter part of year 3 and accretive to earnings in year two.
  • Closing is expected in Q4.
  • Press release
  • CYN +5.7% premarket to $78.83

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