The European Commission today said it approved the RBC Dexia Investor Services deal, whereby the Royal Bank of Canada will buy out Dexias half of the joint venture. The deal passed clearance under the EU Merger Regulation after being examined under the simplified merger review procedure, the EC said in a statement.
It is one of the regulatory approvals needed beore the deal will close, which is expected this summer, spokespeople have said. The business will be rebranded to reflect its new ownership structure once the deal has closed.
We are engaging with the regulators in our primary geographies and progressing with obtaining the required approvals, an RBC Dexia spokesperson says. The transaction is still anticipated to close in mid-2012. Until such a time it remains business as usual.
RBC signed an agreement April 3 to buy Dexias 50% stake in global custodian RBC Dexia. RBC will pay 837.5 million for Dexias half.
Dexia was forced to sell off its healthiest business units and restructure its remaining businesses in order to pay off bailout loans it took at the height of the crisis in 2008.
(CG)