RBC Acquiring Abacus

RBC has acquired Abacus. The terms of the transaction were not disclosed. The transaction has been approved by Abacus shareholders and all relevant regulators. Both sides have begun working toward seamlessly integrating the operations of the companies with an immediate

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RBC has acquired Abacus. The terms of the transaction were not disclosed.

The transaction has been approved by Abacus shareholders and all relevant regulators. Both sides have begun working toward seamlessly integrating the operations of the companies with an immediate focus on creating value for our clients and our shareholders.

“Abacus’ talent, expertise and reputation for client service makes this an excellent fit on strategic, cultural and economic factors,” said Michael Lagopoulos, President and CEO, Global Private Banking, RBC. The acquisition is expected to be virtually neutral to RBC earnings in 2006 and slightly accretive in 2007.

Abacus has offices in six locations: London, Jersey, Guernsey, Edinburgh, Cheltenham and Amsterdam. As a result of this transaction, assets under administration of RBC’s Global Private Banking business has increased by US$41 billion. The deal provides RBC’s Global Private Banking business with a greater presence in the British Isles with a total of more than 1,200 employees. Around the world, RBC’s Global Private Banking business has a total of 30 offices in 21 countries with almost 2,000 employees serving the wealth management needs of international high net worth individuals and select institutional clients.

Paul Patterson, head of Global Private Banking for RBC in the British Isles, will oversee the integration of the combined group. Huw Bolle-Jones, the Group Chief Executive of Abacus, will take responsibility for the merged British Isles trust and fiduciary services of the combined private client businesses.

RBC has had operations in the British Isles since 1910. “Our focus in this critical market is to grow our business through the delivery of team-based wealth management solutions, broadening relationships with our existing clients and expanding our sales teams and client base,” Patterson said. “As two leading organizations, Abacus and RBC will combine their best practices, knowledge, and expertise to form an innovative and client-oriented organization.”

With the acquisition of Abacus, RBC strengthens its position in wealth management services in the U.K. and Channel Islands, with greater presence in continental Europe. Serving wealthy private and institutional clients, Royal Bank of Canada provides a full range of wealth management services, including international trust and structured solutions, discretionary investment management and advisory services, and international banking and credit solutions. RBC also provides global share plan administration, employee benefit trusts, international pension plans and global custody and fund administration services for select institutional clients in jurisdictions where it has unique expertise.

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