“It is business as usual at RBC Dexia,” a spokeswoman for the bank in Toronto has told Delano. “Dexia’s position has no impact on RBC Dexia or its operations.”
Facing huge Greek sovereign debt exposure, Dexia group is being forced to sell its Luxembourg-based businesses as part of a Franco-Belgian government bailout plan. Negotiations have already begun over the fate of RBC Dexia Investor Services, a joint venture 50 percent held by Dexia and 50 percent by RBC.
Although RBC holds preemptive rights to any sale of Dexia’s stake, “we are not commenting on negotiations” involving Dexia, the spokeswoman said.
She gave no indication that Canada’s largest bank would buyout Dexia’s share--leaving open the possibility the business would remain a standalone entity--despite the turbulence experienced by its partner. The joint venture “is structured to prevent conditions at either parent company from impairing RBC Dexia’s ability to operate as a strong, independent company.”
“RBC remains committed to the RBC Dexia joint venture and ensuring its continued success and focus on growth,” she added.
The spokeswoman is also confident the coming change in ownership presents no challenge to the Canadian giant. RBC and Dexia both have independent service contracts with the Luxembourg-based joint venture “which would ensure smooth transitions in the event” Dexia’s stake passed “to a third party.”
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