RBC said Monday that the acquisition is intended to strengthen its position as a global asset manager. RBC Global Asset Management is seeking to expand and diversify its market share beyond North America, and the bank said it remains committed to growth in Australia and the Asia-Pacific region. The transaction is expected to close in the first quarter of 2027.

Yarra Executive Chairman Dion Hershan said the decision to combine with RBC followed a “long and deliberate search” for a business partner.

The deal follows other Canadian banks’ moves in the region and recent portfolio changes. Earlier this month, Bank of Montreal completed its acquisition of the Australian capital markets business of Euroz Hartleys to bolster the metals and mining franchise of BMO Capital Markets.

RBC and BMO also agreed this year to sell their jointly owned commerce platform, Moneris Solutions, to technology investor Francisco Partners for about C$2 billion ($1.4 billion). RBC estimated the sale would generate an after-tax gain of C$475 million and have a marginally positive effect on its CET1 ratio.