City National Corporation Announces Definitive Agreement to be Acquired by Royal Bank of Canada
Agreement Seeks to Create Strong Combination of U.S. Private and Business Banking and Wealth Management Capabilities
Russell Goldsmith to Remain City National's Chairman and CEO and Will Lead RBC's U.S. Wealth Management Unit
City National Shares Valued at Approximately $93.80 Per Share in Cash and Stock
LOS ANGELES -- City National Corporation (NYSE:CYN) and Royal Bank of Canada (TSX:RY) (NYSE:RY) today announced a definitive agreement by which Royal Bank of Canada will acquire all outstanding shares of City National Corp. Total consideration is valued at approximately $5.4 billion at announcement, or approximately $93.80 per City National share, comprised of a mix of cash and common stock, based on RBC's closing stock price on January 21, 2015. The agreement has been approved by the boards of both companies.
In the United States, RBC already has a top-10 investment bank and the 8th largest wealth management firm. RBC has 8,000 employees in the U.S., including more than 3,000 in New York.
"We're very enthused about merging with RBC," said City National Chairman and CEO Russell Goldsmith. "This combination is a compelling opportunity. It will deliver significant value to City National shareholders along with the opportunity to participate in the growth of RBC. It will promote both continuity and growth, enabling our outstanding team of colleagues to maintain and even strengthen City National's value proposition. It also will enhance what we can do for our clients and the communities we serve. My colleagues and I look forward to joining forces with this company that has tremendous financial strength, considerable resources and capabilities, and values that are very similar to those of City National."
STATEMENT OF THE FEDERAL HOUSING FINANCE AGENCY ON CERTAIN SUPER PRIORITY LIENS
FOR IMMEDIATE RELEASE
Today, the Federal Housing Finance Agency (FHFA) is alerting homeowners, financial institutions, and state authorities of the agency’s concerns with state-level actions that threaten the first-lien status of single-family loans owned or guaranteed by Fannie Mae and Freddie Mac. In particular, FHFA is concerned about state actions to create super-priority liens in two instances: 1) through certain energy retrofit financing programs structured as tax assessments and 2) through granting priority rights in foreclosure proceedings for homeowner associations. In issuing this statement, FHFA is acting in furtherance of its statutory obligations as regulator and conservator of Fannie Mae and Freddie Mac.