RBC has announced its acquisition of BlueBay Asset Management for approximately £963 million, boosting its asset management capabilities and market presence.

Transaction Summary

On October 18, 2010, BlueBay Asset Management plc and the Royal Bank of Canada (RBC) announced the agreement on the recommended acquisition of BlueBay by RBC. Under the terms of the public takeover, RBC valued BlueBay's issued share capital at approximately £963 million, which represents a premium of around 58% compared to the average closing share price for the three months ending October 15, 2010. The acquisition will be executed through a Court-sanctioned scheme of arrangement.

Information on BlueBay Asset Management

Founded in 2001, BlueBay Asset Management plc delivers investment management services, principally tailored to institutional investors. Established in London, with additional offices in Stamford and Tokyo, BlueBay specializes in both long-only and alternative investment products across various sub-asset classes, including investment grade corporate debt, high yield corporate debt, emerging market debt, convertible bonds, distressed debt, and multi-strategy debt strategies. As of September 30, 2010, BlueBay managed approximately US$40.0 billion in assets, making it one of Europe's largest independent managers of fixed income debt funds. Since its listing on the London Stock Exchange in November 2006, BlueBay has been a constituent of the FTSE 250 index.

Industry Overview in the UK

The asset management industry in the UK is one of the largest and most sophisticated in the world, with a broad range of investment strategies served by a mix of domestic and international firms. The United Kingdom's regulatory framework is reputable, attractin