Allen & Overy (A&O) is advising Royal Bank of Canada (RBC) on a €838m (£692m) deal to buy the remaining 50% stake in its City-based investment management joint venture RBC Dexia Investor Services.

The deal, which will see RBC take full ownership of the business, was announced last week (3 April) but is subject to regulatory approval and is expected to close in mid-2012.

A&O London corporate partner Mark Gearing is leading the team from the magic circle firm, while Dexia is working with US firm Cleary Gottlieb Steen & Hamilton, which also fielded a London team, led by corporate partner Michael McDonald (pictured).

Both firms have worked with their respective clients in the past, with A&O acting for RBC on deals including its £963m acquisition of London-based asset manager BlueBay in 2010, and as one of three lead banks financing Global Infrastructure Partners' £1.5bn acquisition of Gatwick Airport from BAA in 2009.

Meanwhile, Cleary recently acted for Dexia on its €730m (£602m) sale of Dexia Banque Internationale a Luxembourg to Precision Capital and the State of the Grand Duchy of Luxembourg, as well as its €4bn (£3bn) sale of Dexia Bank Belgium to the Belgian state in October last year.

RBC Dexia is one of the world's 10 largest custodians with €2.1tn (£1.7tn) in assets under administration and 5,500 staff in 16 countries. It offers investor services including efficiency improvements and risk management to financial institutions.