CACEIS, the asset servicing banking group of Crédit Agricole S.A. and Santander, and Royal Bank of Canada (RBC) announced that they have signed a Memorandum of Understanding with a view for CACEIS to acquire the European asset servicing activities of RBC Investor Services and its associated Malaysian centre of excellence. This would include custody, global custody FX, fund administration, transfer agency, middle office and securities lending.
RBC Investor Services is a leading provider of asset services and holds Assets under Administration (AuA) in Europe of around €1.2 trillion and Assets under Custody (AuC) in Europe of around €0.5 trillion. Together, the combined entity of RBC Investor Services and CACEIS would have around €4.8 trillion in AuC and €3.5 trillion in AuA (all figures as at 31/03/2022).
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The transaction would combine two strong asset servicers in Europe and would strengthen CACEIS’ position as a global leader in asset servicing with access to a broader and complementary client base and service offering.
The integration of the RBC Investor Services business into CACEIS would deliver scale and stronger competitive positioning as CACEIS would benefit from a larger geographical presence, full coverage of the value chain and an expanded offering for both existing and new clients.
The execution of the final agreements between CACEIS and RBC requires prior consultation with the relevant works councils of CACEIS.
The completion of the contemplated transaction will be subject to customary closing conditions, including regulatory and antitrust approvals, and is expected to take place by the end of the third quarter of the 2023 calendar year.
Jean-François Abadie, CEO of CACEIS, commented: “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.”