Brewin Dolphin shares jump 61% on $2.1 billion RBC buyout deal

Brewin Dolphin shares jumped 61% to 511 pence after the Royal Bank of Canada agreed to buy the U.K. firm for £1.6 billion ($2.1 billion), or 515 pence per share, in cash. RBC said the deal will give it a number-three position in the U.K. and Ireland for its wealth management business. RBC said the deal will increased adjusted earnings per share by about 1% in the first quarter, and over the medium term the combined wealth management business in the U.K., Ireland and Channel Islands can generate revenue compound annual growth rate of about 9%. The acquisition is anticipated to result in an about a 40 basis point reduction in RBC's Common Equity Tier 1 ratio.

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