Republic Bank to acquire RBC Suriname operations
Trinidad-based Republic Bank Limited (RBL) says it is acquiring the Suriname operations of RBC Royal Bank RBC Financial (Caribbean) Limited, subject to regulatory approvals.
It said that acquisition is part of RBL's purchase of Royal Overseas Holdings (St Lucia) Limited, at an estimated cost of US$39.8 million.
RBL Managing Director David Dulal-Whiteway said that the acquisition fits in perfectly with his bank's regional expansion strategy and once completed, will expand Republic Bank's footprint in the Caribbean to eight territories.
"As a Caribbean-based bank, we are always on the lookout for opportunities in the region. Suriname's diverse and stable economy makes it an attractive investment territory and one that we have been desirous of entering since 2012.
"We view this opportunity to acquire Suriname's third-largest bank as a solid entry point into that market," Dulal-Whiteway said in a statement.
"We are excited about the prospect of this acquisition as we work towards achieving our vision as the Caribbean financial institution of choice. We look forward to partnering with the team in Suriname, using our successful business model that relies on the local knowledge supported by well-trained employees, effective policies, processes and governance structures..."
RBC Royal Bank (Suriname) NV operates a network of six branches with assets of approximately US$525 million, as at October 31, 2014, and an employee complement of 199.
The transaction will be accretive to RBL shareholders and upon completion of the acquisition, Republic Bank intends to rebrand the newly acquired subsidiary in Suriname.
The head of RBC Caribbean Banking, Rob Johnston, said "following a thorough and careful review of RBC's Suriname operations, we concluded that the best decision for the long-term future success of the operations was to sell it to a strategic buyer with interest in building a presence in Suriname.
"Republic Bank, which also has operations in neighbouring Guyana, is exactly such a partner," Johnston added.