By Ian Walker and Sabela Ojea

Brewin Dolphin Holdings PLC said Thursday that it has agreed to a 1.6 billion-pound ($2.10 billion) takeover by Royal Bank of Canada after being hit by the effects of Russia's invasion of Ukraine.

The wealth-management firm has suffered a financial hit from the geopolitical situation. According to Brewin Dolphin, for the two-month period ended Feb. 28, assets under management declined to GBP55 billion, with discretionary funds falling to GBP48.3 billion due to market performance.

This compares with the fact that assets under management grew by 3.7% to GBP59 billion and discretionary assets under management increased by 4.4% to GBP52 billion as at Dec. 31 when compared with Sept. 30.

Under the deal, accepting shareholders of Brewin Dolphin will get 515 pence for each share held. The price is a 62% premium to the company's closing price of 318 pence on Wednesday.

Royal Bank of Canada said it is strategically focused on evaluating opportunities to grow its wealth-management operations in its core markets--Canada, the U.S. and Europe.

"Although there is continued volatility in the markets, the strength of Brewin Dolphin's brand, client proposition and relationships demonstrate resilience in its business model and make Brewin Dolphin well placed to capture future market growth," it said.

Write to Ian Walker at ian.walker@wsj.com; Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

March 31, 2022 02:55 ET (06:55 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
Royal Bank of Canada (TSX:RY)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Royal Bank of Canada Charts.
Royal Bank of Canada (TSX:RY)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Royal Bank of Canada Charts.