Linda Hutchinson-Jafar, Business Writer
Three women are seen walking by an RBTT jamaica branch in New Kingston, St. Andrew. RBTT Financial Holdings has had a second takeover offer, but the bidder has not been named. - File
Royal Bank of Canada signalled on Tuesday it will likely expand RBTT's operations in Jamaica and Trinidad, while representatives of its new acquisition moved to assure workers that there would not be a rush to cut jobs.
RBC, in a combination cash-and-shares deal, has bought RBTT Financial Group for US$2.2 billion
The deal will bring together RBC's existing Caribbean operations with its new RBTT Holdings. The Canadian bank has operated in the Bahamas since 1908.
RBTT adds C$7.49 billion (US$7.5 billion) to RBC's C$600 billion asset base.
"This is a transformational acquisition for RBC in the Caribbean," said Peter Armenio, RBC's head of United States and international banking, "one that extends our reach into many important markets, notably Trinidad and Tobago, Jamaica, and the Dutch Caribbean."
The takeover will create one of the largest banking networks in the Caribbean, with a presence in 18 countries and territories, said a joint release from the companies.
With more than US$13.7 billion in assets, the combined operations will have 130 branches across the Caribbean, with more than 6,900 employees serving more than 1.6 million clients.
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Confirmation of the deal sent RBTT's share up 99 cents to close at TT$35 on the Trinidad Stock Exchange. That exchange does not trade on Mondays.
The Jamaican market had already digested the news Monday after a report Sunday by the Trinidad Express that a deal had been struck - the stock traded $45 higher to close at $400 - with no activity on the stock Tuesday.
The takeover, which is still to be approved by shareholders, gives RBC a presence in Jamaica where RBTT operates a network of commercial banks, and marks its return to Trinidad and Tobago.
The bank is a distant third in the Jamaican market to heavy hitters Scotiabank Jamaica and National Commercial Bank. The acqusition, incidentally, puts Jamaica's top four banks under Canadian control.
