Investment firm Brewin Dolphin, with a branch in Cheltenham, is in line to be taken over by the Royal Bank of Canada.

The board of directors are recommending shareholders accept an offer for the wealth management and financial planning firm of £1.6 billion.

Royal Bank of Canada Wealth Management (Jersey) Holdings Limited, a wholly owned subsidiary of RBC, has made a cash offer for the entire issued share capital of 515 pence per share.

The deal would create the third biggest UK wealth manager in the market.

Brewin Dolphin has more than 30 offices and manages assets of £59 billion. Royal Bank of Canada is one of Canada's biggest banks.

Doug Guzman, group head of RBC Wealth Management, said: "By combining two highly complementary businesses, we will increase the depth and breadth of our services and position the combined business as a premier integrated wealth management provider to private and institutional clients."

Robin Beer, chief executive officer of Brewin Dolphin, said: "As part of RBC we would be able to provide our clients with a broader range of products and services, and expand our distribution channels through leveraging RBC's global presence."