Royal Bank of Canada, the country’s largest bank, agreed to buy the 50 percent of RBC Dexia Investor Services Ltd. it doesn’t already own from Banque Internationale a Luxembourg SA for about C$1.1 billion ($1.1 billion) in cash.
Royal Bank must revalue its investment to reflect the purchase price, resulting in a non-cash loss of about C$170 million, the Toronto-based firm said today in a statement. Most of the loss will be taken in the bank’s fiscal second quarter. Royal Bank will also have a C$30 million loss in the quarter from selling Dexia Group debt securities as part of the deal.
