- 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