[ by Melanie Gretchen ] Royal Bank of Canada agreed this week to buy out its joint venture partner, French-Belgian bank Dexia, for €837.5 million ($1.1 billion).  The two financial institutions each  held a 50% stake in RBC Dexia, that provided back-office support for financial services companies. As part of the breakup of the French-Belgian bank Dexia, that had received a combined €6 billion bailout from the French and Belgian governments last year, the Canadian bank will develop RBC Dexia.  Currently, RBC Dexia ranks among the world’s top 10 global custodians, with €2.1 trillion ($2.7 trillion) in assets under administration as of 12/31/11, according to a company statement.

"The transaction announced today has significant strategic value to us, not only as a stand-alone business but also in its complementary capabilities to RBC.  It is a strong business that generates stable revenue in an attractive sector that is well positioned for long-term growth. It has a premier list of institutional investor clients globally and fits well with our diversification strategy." -- Gordon Nixon, RBC CEO.

Progress Makes Money. Prior to its deal with RBC, Dexia had been on been divesting many of its businesses.   It sold most of its Luxembourg operations to Precision Capital, a Qatari investment group, for €730 million in December. For further details, go to [Dealbook, 4/3/12].