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Schroders in talks to acquire River & Mercantile in £230m deal

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Schroders said its assets had fallen in the three months to the end of September
Schroders said it had been one of the most challenging years of recent times

Asset management firm Schroders is reportedly in talks to buy River and Mercantile Group’s solutions business, Sky News reported.

The deal – which will take Schroders’ assets to £750bn – will be worth around £230m, sources told Sky News’ Mark Kleinman, and could be announced as soon as Tuesday morning.

Managing £43bn worth of assets, River and Mercantile is expected to view positively the sale price and especially investment manager AssetCo, which owns a big stake of the company, will see the deal in a favourable light.

As reported by Kleinman, the acquisition of River and Mercantile is the last of a series of deals made by Schroders with some of them focused on natural capital. In the first quarter of 2021 the firm set a new record when it registered a £9bn jump.

Its asset management division was responsible for more than £8bn of that increase, with its wealth division bringing in £0.9bn in the first three months, Morning Wire reported.