Royal Bank of Canada is walking down the aisle with a movie star. But the nuptials may not prove as pricey as they at first seem.

Canada's second-largest lender by assets said Thursday it would acquire Los Angeles-based City National in a cash-and-stock deal worth around $5.4 billion, or $98.30 a share-a 26% premium to the stock's previous closing price. This values City National at around 22 times expected 2015 earnings and two times book value.