Royal Bank of Canada's wealth management arm is looking to acquire Brewin Dolphin with a cash offer with an equity value of around £1.6bn at 515 pence per share.
Brewin Dolphin - a leading wealth manager in the UK and Ireland with assets under management of £59bn - has an "impressive" track record of growth and innovation, according to RBC, which said the UK is a key growth market for the bank.
Following the announcement on Thursday (31 March) morning, Brewin Dolphin's share price soared by over 60% to 512 as of 8:50am.
RBC also highlighted Brewin Dolphin's "longstanding record of delivering superior client service and robust performance".
Doug Guzman, group head of RBC Wealth Management, RBC Insurance and RBC Investor & Treasury Services, said: "The UK is a key growth market for RBC, and Brewin Dolphin provides us with an exceptional platform to significantly transform our wealth management business in the region, giving RBC Wealth Management a #3 market position in the UK and Ireland, in addition to being a market leader in Canada, with a growing position in the United States.
"By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients."
David Thomas, CEO of RBC Capital Markets Europe, noted how the acquisition is a "transformative" one for RBC Wealth Management.
Robin Beer (pictured), CEO of Brewin Dolphin, said: " As part of RBC we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC's global presence.
"We share complementary values which emphasize the importance of long-standing client relationships and an inclusive culture supportive of employees and local communities. Our focus will be on maintaining continuity, so that we build on what we have already achieved. I am looking forward to us working together to enhance our market position as a leading advice-focused, digitally enabled wealth manager."