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City National shareholders approve merger with Royal Bank of Canada

City National shareholders have voted in favor of the proposal to adopt the merger agreement with Royal Bank of Canada.

On January 22, 2015, City National and RBC announced they had entered into a merger agreement under which RBC will acquire City National. The merger is subject to customary closing conditions, one of which was approval by City National’s shareholders. Both companies also must obtain regulatory approvals.

At the special meeting today, 40.6 million shares were voted in favor of the merger agreement. That represents 99.6 percent of shares voting and 73.1 percent of all City National shares outstanding.

"Today’s vote reflects what an outstanding opportunity this merger is for City National’s clients, colleagues, communities and shareholders," said City National Chairman and CEO Russell Goldsmith.

"RBC’s strong commitment to City National is itself a reflection of six decades of dedicated colleague service and the confidence of so many loyal clients. Joining RBC, one of the world’s finest and strongest financial services companies, will enhance City National’s value proposition and capabilities, maintain and expand its outstanding team of colleagues, and enable City National to better serve its communities and clients on The way up®."

At the time it was announced, the merger represented a value of approximately $93.80 per share of City National common stock, based on RBC’s common share closing price of $62.16 on the New York Stock Exchange on January 21, 2015.

That represented a premium of approximately 22 percent to City National’s 15-day volume-weighted average share price ending January 21.

City National and RBC continue to expect the merger to close in the fourth calendar quarter of 2015.