Royal Bank of Canada (RBC) has secured final regulatory approval for its previously announced deal to buy British wealth manager Brewin Dolphin for £1.6bn in cash.
The approval was granted by Canada’s Office of the Superintendent of Financial Institutions.
It shows that the deal has satisfied the necessary competition law and regulatory conditions pertaining to a scheme of arrangement under Part 26 of Companies Act 2006.
According to Brewin Dolphin, both the scheme and the acquisition are subject to certain conditions mentioned in Part 3 of the scheme document that was published in April this year.
The document included the provision of approvals regarding regulatory and competition law from some regulators and competition authorities in the UK, Ireland, Jersey and Canada.
Brewin Dolphin also noted that the deal is still subject to the fulfilment or waiver (where applicable) of the outstanding conditions outlined in section A of Part 3 of the scheme document.
The company has already requested for de-listing of its shares on the premium segment of the official list and the trading of its shares on the main market of the London Stock Exchange for listed securities from 27 September 2022.
As part of the terms of the acquisition, RBC Wealth Management (Jersey) (BIDCO), an indirect wholly-owned subsidiary of RBC, will buy the issued and future ordinary share capital of Brewin Dolphin.
The deal involves the Canadian lender offering 515p per Brewin Dolphin share in cash, a 62% premium to the latter’s last closing share price.