The Canadian lender already has a large investment banking and wealth management presence in the US, and wants to expand its reach.
“This combination creates a powerful expansion platform for focused long-term growth in the country which we view as our second home market,” said RBC chief executive Dave McKay.
“City National serves high net worth and commercial client segments in select high-growth markets, and represents a unique opportunity to complement and enhance our existing US businesses.”
RBC is offering $47.25 in cash and 0.7489 of an RBC share for each City National share. The wealth management units of the pair will be combined and headed by City National’s chairman and chief executive Russell Goldsmith.
RBC’s shares fell over two per cent on Wall Street.