CACEIS has entered into a memorandum of understanding with Royal Bank of Canada (RBC) to acquire the European asset servicing activities of RBC Investor Services and its associated Malaysian centre of excellence.

The acquisition, expected to be completed by the end of the third quarter of 2023, would include custody, global custody FX, fund administration, transfer agency, middle office and securities lending.

RBC Investor Services holds around €1.2 trillion in assets under administration (AuA) in Europe and around €0.5 trillion in assets under custody (AuC) in Europe.

Jean-François Abadie — CACEIS CEO said: “This combination with RBC Investor Services helps us consolidate our position as a leading European player in asset servicing.

“We are enhancing our leadership across a range of services, increasing our position in a number of key markets, growing relationships with global asset managers, and increasing our capabilities and scale.

“Additionally, the staff from RBC Investor Services will bring their expert knowledge of the servicing needs of international investor clients and distribution services.”

The acquisition will increase CACEIS’ assets under custody/administration (AUC/A) to approximately €4.8 trillion and to approximately €3.5 trillion.

Francis Jackson — RBC Investor Services CEO said: “This [proposed acquisition] is an opportunity for our European clients to enjoy the combined scale of RBC Investor Services’ European business and Malaysia centre of excellence and CACEIS’ global footprint, while allowing us to focus on our Canadian asset services franchise in our home market.”

The proposed transaction, however, excludes RBC Investor Services’ Canadian operations.

The proposed transaction will have a de minimus impact to RBC’s common equity Tier 1 (CET1) ratio and earning per share (EPS), according to CACEIS.

The execution of the final agreements between CACEIS and RBC needs prior consultation with the relevant works councils at CACEIS.

The completion of the proposed acquisition is subject to customary closing conditions, including regulatory and antitrust approvals.

CACEIS is the asset servicing business owned by French bank Credit Agricole and Spanish bank Santander.

  Banco Santander, CACEIS, Crédit Agricole, Francis Jackson, Jean-François Abadie, RBC Investor Services, Royal Bank of Canada