UK wealth manager in £1.6bn Canadian takeover

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1st April 2022

Bite-sized business news from the UK and beyond

Good morning Today is 1st April, which means pranks are in the pipeline. But while many companies will be finding new ways to trick customers (think adapted logos, quirky inventions, and “did they just say that?” social posts), we’re delivering a handful of top business and finance stories to leave you feeling anything but foolish.

Today's stories

UK wealth manager in £1.6bn Canadian takeover
Record US oil reserves release

WEALTH
UK wealth manager in £1.6bn Canadian takeover

What’s going on?
Royal Bank of Canada has offered £1.6bn to buy one of Britain’s biggest wealth managers, Brewin Dolphin.

Why is this important?

Founded 260 years ago, Brewin is one of the largest and best known wealth managers in the country, managing £55bn on behalf of more than 100,000 customers in the UK and Ireland.

It’s attracted the interest of Canadian banking group RBC who want to combine it with their existing, small UK wealth management division which will create the third largest wealth management firm in the UK and Ireland.

RBC is one of the world’s largest financial services companies, with 88,000 employees and annual revenues of £30bn.

And RBC is willing to pay a hefty premium for Brewin. The £1.6bn offer values the wealth manager at more than 60% higher than its market value on Wednesday, the day before the deal was announced.

Zooming out

The deal is the latest in a long line of acquisitions in the rapidly growing UK wealth market, fuelled by an ageing population. By 2039 it is expected that 25% of Brits will be over 65 and with many having sizeable pension pots and in need of financial advice. The UK wealth market is currently worth £1.6tr and is forecast to grow by 7% a year.

Other stories to keep you in the loop

UK house prices rise at fastest rate in 17 years
Martin Lewis blamed as energy company websites crash ahead of price cap rise
Russia threatens to stop supplying gas if not paid in roubles
Co-op food names two top managers to cover CEO's family-orientated career break
Apple pays another round of $200,000 bonuses to retain engineers
H&M sales growth slows as Ukraine war hits consumer sentiment

OIL
Record US oil reserves release

US President Joe Biden has announced that the country will release about an extra million barrels of oil a day from its emergency reserves to try to cool energy prices. It’s the largest release since the reserves were created in 1974.

Brent crude, a benchmark measure of oil prices, fell by 3% on Biden’s announcement.

Energy markets have been in turmoil since tensions in Eastern Europe began with supply concerns over Russia, one of the world’s largest oil and gas producers. The UK, US and EU have all stated that they are planning to import less energy products from Russia in response to the country’s invasion of Ukraine. Since then, the race has begun to find alternative sources.

The UK and US have appealed to large oil producers in the Middle East to ramp up production, but so far the response has been muted.

Although one million barrels sounds like a lot, it only equates to 2% of the world’s daily oil consumption and analysts don’t expect that it will be enough to cool prices in the long run.

But relief could come from the demand side. China, the world’s second oil consumer, is facing another period of strict Covid lockdowns, which is starting to slowdown the economy

Stat of the day

Formula One has agreed a deal worth £1bn over 10 years to hold a Grand Prix in Las Vegas from 2023, the biggest payday in the sport's history

Interesting links from around the web

Time Magazine’s 100 most influential companies of 2022
Is calorie-counting ever actually helpful?
How to get your old job back if you hate your new one

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UK wealth manager in £1.6bn Canadian takeover

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