Royal Bank of Canada is in "advanced talks" to buy out Dexia from its partnership in RBC Dexia Investor Services as the European bank seeks to shed assets, The Globe and Mail reported Tuesday, citing comments by Luxembourg's finance minister at a press conference late Monday.
RBC intends to use its right of first refusal to buy the remaining 50% of the joint venture from Dexia's Banque Internationale Luxembourg, the official said. It isn't clear what price the 50% stake would fetch.
The joint venture, which provides institutional investors with pension administration and securities lending services, had $2.8 trillion in client assets under management at end 2010 and is considered profitable. A RBC spokeswoman wouldn't comment on the matter.