Royal Bank of Canada (RBC) has announced in a press release that it has completed the $5 billion acquisition of City National Corporation.
The bank plans to hire more than 100 bankers and open another office in New York as it seeks to expand City National.
David McKay, the president and CEO of RBC, told Bloomberg during a telephone interview that they are planning to "significantly increase the hiring."
"The growth plan here doesn't require a lot of physical footprints, this is about people and growing excellent private bankers and commercial bankers," he said.
RBC said in the press release that they will pay City National $2.6 billion in cash and 41.6 million RBC common shares.
They will also be issuing $275 million of RBC first preferred shares for every outstanding share of City National preferred stock.
RBC adds in the press release that they will also be combining their U.S. Wealth Management unit with City National to create one line of business.
The combined unit will be reported as part RBC Wealth Management segment.
Bloomberg adds that McKay plans to draw on City National's private and commercial banking expertise to sell products to RBC's wealthy clients in the U.S.
McKay said that RBC's wealth and capital markets offices in the U.S. and in London will be leveraged to "aggressively" expand City National's reach.
Bloomberg adds that RBC will be hiring more than 100 bankers in the first half of 2016 and open a City National office.
The new office will be located at Vesey Street in Manhattan, near RBC's existing Capital Markets office.
Bloomberg adds that with the acquisition, City National will be able to tap into RBC's 1 trillion Canadian dollars, or $736 billion balance sheet.
City National can use this to take on larger commercial clients.
Russel Goldsmith, the CEO of City National, will continue to lead the combined line of business from Los Angeles, according to the press release.
Los Angeles is where City National is headquartered.
