Credit Agricole and CACEIS to acquire RBC unit

On October 14, CACEIS and Royal Bank of Canada signed a Memorandum of Understanding about CACEIS’s potential acquisition of RBC Investor Services’ European business. A related Malaysian division will be acquired along with the European asset servicing operations of RBC Investor Services.

After it is completed, which is anticipated to happen by the end of the third quarter of 2023, this transaction would further strengthen CACEIS’ position as a global leader in asset servicing in Europe and throughout the world with approximately €4.8 trillion in Assets under Custody and €3.5 trillion in Assets under Administration based on figures released on the 31st of March, 2022.

With a projected return on investment of more than 10% over three years due to the realisation of synergies, this deal would be consistent with the Group’s development goals and satisfy profitability criteria. As of the 31st of March 2022, it would have a negative effect on the CET1 of Crédit Agricole S.A. and the CET1 of the Crédit Agricole Group by less than 10 basis points.

The relevant works councils must be consulted before the final agreements between CACEIS and Royal Bank of Canada are signed, and the transaction’s completion is subject to the usual closing requirements, including any necessary regulatory clearances.

“This combination with RBC Investor Services helps us consolidate our position as a leading European player in asset servicing,” said CACEIS Chief Executive Jean-François Abadie.