Royal Bank of Canada has acquired Abacus Financial Services in a major move to expand its private banking operations in the UK. Abacus, ...

Royal Bank of Canada has acquired Abacus Financial Services in a major move to expand its private banking operations in the UK.

Abacus, which is based in Jersey and oversees assets worth about £23 billion ($40 billion), was previously part of Coopers & Lybrand, the accounting firm, but was spun off amid concerns about possible conflicts of interest.

Terms of the transaction were not disclosed, although some of the compensation is thought to be deferred in order to help retain the company’s senior executives, who control the business. Abacus has about 400 employees, mostly based in Jersey.

As a result of the deal, Huw Bolle-Jones, chief executive of Abacus, will take charge of the combined trust and fiduciary services businesses in the British Isles.

“The marriage between Abacus and RBC is a natural one whereby the benefits going forward for both parties are not only strategic but also growth orientated given the high degree of assets under management,” said the mergers & acquisitions specialist Ray Soudah, of Millenium Associates, who acted for Abacas on the deal.