RBC Makes Caribbean Buy

The deal for RBTT Financial Group is worth $2.2 billion.
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Royal Bank of Canada

(RY) - Get Report

agreed to acquire RBTT Financial Group, a banking and financial services firm that has customers in Trinidad and Tobago and the Caribbean, for roughly $2.2 billion in cash and stock.

The acquisition should close by the middle of next year and add to Royal Bank's earnings per share in 2008. The deal will create a bank with a presence in 18 countries and territories across the Caribbean.

The combined operation will have $13.7 billion in assets, 130 branches and more than 1.6 million clients. RBC's expanded Caribbean retail banking operations will ultimately be headquartered in Trinidad and Tobago.

The acquisition marks RBC's return to Trinidad and Tobago, where it had maintained operations from 1902 to 1987.