RBC Wealth Management has reached an agreement to buy BlueBay Asset Management for £963m.
The Royal Bank of Canada offer of 485p per share is at a 29% premium to the last closing price of BlueBay shares.
London-based BlueBay is one of Europe's largest independent managers of fixed income debt funds and products, with US$40bn assets under management.
Formal documentation will be sent to BlueBay shareholders in November 2010 and subject to the satisfaction of all regulatory and other conditions, the acquisition will close by the end of the year.
BlueBay manages a combination of long-only and alternative investment strategies, primarily focused on Europe and the emerging markets.
These include investment grade corporate debt, high yield corporate debt, emerging market debt, convertible bonds, distressed debt, and multi-strategy debt capabilities.
BlueBay will retain its investment autonomy and related operational independence following the acquisition, but will collaborate with RBC Wealth Management, RBC's global segment for wealth and asset management solutions.
"This acquisition will further RBC's strategy to leverage our position as a top 10 global wealth manager, and continue to expand our asset management solutions for the benefit of our clients around the world," RBC Wealth Management group head George Lewis says.
"BlueBay is an ideal fit with RBC's growing asset management business and we are confident that this transaction will benefit clients, employees and shareholders of both firms."
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