The board of governors of the US Federal Reserve System has approved Royal Bank of Canada’s (RBC) acquisition of City National Corp.
Under the terms of the deal, City National common stockholders will have an option to receive, for their shares of City National common stock, cash, RBC common shares, or a combination of cash and RBC common shares.
The move follows approval from the Office of the Superintendent of Financial Institutions.
In January 2015, RBC has reached an agreement to acquire City National, a US-based lender serving HNW clients, for $5.4bn as part of its efforts to expand wealth management operations abroad.
City National with $33.8bnin assets has 75 offices in California, Nevada, New York City, Nashville and Atlanta.
Subject to the satisfaction of customary closing conditions, the deal is scheduled to complete on 2 November 2015.