Deal creates new Caribbean banking leader
PORT OF SPAIN/TORONTO, June 16 /CNW/ - Royal Bank of Canada (RY on the
TSX and NYSE) today announced it has completed its acquisition of the RBTT
Financial Group (RBTT) for a purchase price of approximately TT$13.7 billion
(US$2.2 billion). This historic transaction creates one of the most expansive
banking networks in the Caribbean, with a presence in 18 countries and
territories across the region. With more than US$13.7 billion in assets, the
combined operations will have 130 branches across the Caribbean, with 7,000
employees serving more than 1.6 million clients.
"The completion of this transaction affirms RBC's position in the
Caribbean region and advances our strategy to continue to grow our banking
operations outside Canada," said Jim Westlake, RBC's head of International
Banking and Insurance. "RBTT's network complements our Caribbean retail
banking operations perfectly."
RBC's expanded Caribbean retail banking operations will ultimately be
headquartered in Trinidad and Tobago.
"The combination of these two organizations is all about growth and
expansion, which creates new opportunities for our stakeholders," said Peter
July, RBTT Group Chairman. "It has brought enhanced value to our shareholders
who, in addition to receiving a premium for their RBTT shares, can now invest
in one of the most stable and successful banking entities in the world."
In the coming months, Suresh Sookoo, RBTT Group CEO and Ross McDonald,
RBC's current head of Caribbean banking, will share responsibility for leading
a smooth transition. Senior management from both organizations will be
integrated, and Sookoo will become CEO of RBC's Caribbean retail banking
operations, following the successful integration of the two operations.
"We are excited about the opportunities the transaction provides clients
and employees of both companies," McDonald said.
"This deal creates a significantly larger organization that is better
positioned to serve all our customers, who will benefit from expanded market
coverage, the increased lending capacity of the combined banks, and an
expanded range of products," Sookoo added.
The acquisition marks RBC's return to Trinidad and Tobago, where it had
maintained operations from 1902 to 1987. RBC has been working with the
regulatory agencies to explore the possibility of issuing depositary receipts
backed by RBC common shares on the Trinidad and Tobago Stock Exchange.
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate
under the master brand name of RBC. We are Canada's largest bank as measured
by assets and market capitalization and one of North America's leading
diversified financial services companies. We provide personal and commercial
banking, wealth management services, insurance, corporate and investment
banking and transaction processing services on a global basis. Our corporate
support team enables business growth with expert professional advice and
state-of-the art processes and technology. We employ approximately 75,000
full- and part-time employees who serve more than 16 million personal,
business, public sector and institutional clients throughout offices in
Canada, the U.S. and 45 other countries around the world. For more
information, please visit www.rbc.com.
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release may be deemed to be
forward-looking statements under certain securities laws, including the "safe
harbor" provisions of the United States Private Securities Litigation Reform
Act of 1995 and in any applicable Canadian securities legislation, and Royal
Bank of Canada (RBC) and RBTT Financial Holdings Ltd. (RBTT) intend that such
forward-looking statements be subject to the safe-harbor created thereby. The
words "may," "could," "should," "would," "suspect," "outlook," "believe,"
"plan," "strategy," "opportunity," "anticipate," "estimate," "expect,"
"intend," "forecast," "objective" and words and expressions of similar import
are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve numerous
assumptions, and inherent risks and uncertainties, both general and specific,
and risks exist that predictions, forecasts, projections and other
forward-looking statements, including statements about growth in the Caribbean
and the potential issuance of the deposit receipts, will not be achieved. We
caution readers not to place undue reliance on these statements as a number of
important factors could cause our actual results to differ materially from the
beliefs, plans, objectives, expectations, anticipations, estimates and
intentions expressed in such forward-looking statements. These factors
include, but are not limited to the possibility that the anticipated benefits
of the transaction are not realized as a result of such things as the strength
of the economy and competitive factors in the areas where RBTT does business;
the impact of changes in the laws and regulations regulating financial
services and enforcement thereof (including banking, insurance and
securities); judicial judgments and legal proceedings; RBC's ability to
integrate RBTT with RBC successfully; reputational risks, and other factors
that may affect future results of RBC and RBTT, including changes in trade
policies, timely development and introduction of new products and services,
changes in tax laws, and technological and regulatory changes . We caution
that the foregoing list of important factors is not exhaustive. Additional
information about these and other factors can be found in our Q2 2008 Report
to Shareholders and in our 2007 Annual Report to Shareholders.
Except as required by law, Royal Bank of Canada and RBTT assume no
obligation to update the forward-looking statements contained in this press
For further information:
For further information: Media Contacts: RBC: Toronto: Beja Rodeck,
(416) 974-5506, toll-free 1-888-880-2173, firstname.lastname@example.org; Nassau: Deborah
Zonicle, (242) 356-8516, email@example.com; RBTT Financial Group: Port
of Spain: Paul Charles, (868) 623-1322 ext. 2449, firstname.lastname@example.org;
Investor contacts: RBC: Bill Anderson, (416) 955-7804,
email@example.com; For general investor relations information please
visit www.rbc.com/investorrelations; RBTT: Paul Charles, (868) 623-1322 ext.