Royal Bank of Canada (RY on the TSX and NYSE) has completed its acquisition of the RBTT Financial Group for a purchase price of approximately US$2.2 billion.
This historic transaction creates one of the most expansive banking networks in the Caribbean, with a presence in 18 countries and territories across the region. With more than US$13.7 billion in assets, the combined operations will have 130 branches across the Caribbean, with 7,000 employees serving more than 1.6 million clients.
‘The completion of this transaction affirms RBC’s position in the Caribbean region and advances our strategy to continue to grow our banking operations outside Canada,’ said Jim Westlake, RBC’s head of International Banking and Insurance.
‘RBTT’s network complements our Caribbean retail banking operations perfectly.’ RBC’s expanded Caribbean retail banking operations will ultimately be headquartered in Trinidad and Tobago.
‘The combination of these two organizations is all about growth and expansion, which creates new opportunities for our stakeholders,’ said Peter July, RBTT group chairman. ‘It has brought enhanced value to our shareholders who, in addition to receiving a premium for their RBTT shares, can now invest in one of the most stable and successful banking entities in the world.’
In the coming months, Suresh Sookoo, RBTT Group CEO and Ross McDonald, RBC’s current head of Caribbean banking, will share responsibility for leading a smooth transition. Senior management from both organisations will be integrated, and Sookoo will become CEO of RBC’s Caribbean retail banking operations, following the successful integration of the two operations.
‘We are excited about the opportunities the transaction provides clients and employees of both companies,’ McDonald said.
‘This deal creates a significantly larger organization that is better positioned to serve all our customers, who will benefit from expanded market coverage, the increased lending capacity of the combined banks, and an expanded range of products,’ Sookoo added.