With the change in season comes another hint of global custody’s favorite rumor: RBC Global Services is close to acquiring Dexia Fund Services.
The idea of a purchase has been around since at least last year when Luxembourg-based Dexia very publicly said it was looking for a North American partner (See Dexia Fund Services And RBC Global Services Romantically Linked ). Then the Christmas season seemed to stoke the fires of passion once more, when the old rumor again surfaced. However, as in the previous incarnations of this rumor, confirmation is hard to come by this time around as well. While RBC will say only that speculation is just that, Dexia is more defiant, as a spokesperson told Global Custodian: “RBC will not buy DFS.”
Superficially the proposed marriage makes sense. RBC has businesses (securities services, fund administration and private banking) which match those of Dexia and a geographical presence (North America) which the Europeans lack, while Dexia has European exposure that RBC could capitalize on.