The Royal Bank of Canada (TSX:RY) says its purchase of Los Angeles-based City National Corp., has been approved by the board of governors of the U.S. Federal Reserve.

The US$5.4-billion acquisition, which was previously approved by Canadian regulators, was initially announced in January 2015.

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The Royal Bank says the merger is now expected to close on Nov. 2, subject to customary closing conditions.

The bank, which has said the deal will allow it to grow its wealth management business in the United States, comes several years after it sold its U.S. retail banking business.

City National has US$33.8 billion in assets and has 75 offices in California, Nevada, New York City, Nashville and Atlanta.