Another blow to Stock Exchange as Schroders snapped up by US rival in shock £10bn deal
Asset manager Schroders has agreed to a £9.9bn takeover by American investment firm Nuveen, in a deal that would end over two centuries of independence for the UK’s largest standalone asset manager.
Under the terms of the agreement, Schroders shareholders will receive 612 pence per share, including a cash consideration of 590 pence and a dividend of 22 pence.
The cash consideration represents a premium of 29 per cent of Wednesday’s closing price of 457 pence.
The shock acquisition by Nuveen, which is the asset management arm of Teachers Insurance and Annuity Association of America, is set to create one of the world’s largest active asset managers with nearly £1.8 trillion in assets under management across institutional and wealth channels.
The Schroders brand will be retained and London will serve as the combined group’s non-US headquarters and largest office. The deal is expected to complete in the fourth quarter of 2026.
Richard Oldfield, chief executive of Schroders, said: “In a competitive landscape where scale can help deliver benefits, in Nuveen we see a partner that shares our values, respects the culture we have built and will create exciting opportunities for our clients and people.
“The transaction will significantly accelerate our growth plans to create a leading public-to-private platform with enhanced geographic reach and a strengthened balance sheet.”
As recently as July, Oldfield had rebuffed speculation that the Schroder family, who control almost half the company’s shares, were eyeing a sale of the business.
“No, there’s no intention of the family to sell,” Oldfield said last year.
“I engage with two members of the family through the board. They’re tremendously supportive, they’ve made their statutory statement in the annual report that’s very clear about their long-term commitment to the business.”
Nuveen, which holds $1.4 trillion (£1 trillion) in assets under management, also hailed the transaction, adding it would unlock “new growth opportunities for wealth an institutional investors around the world”, while also bolstering its global presence.
‘Global whales swallowing big fish in UK pond’
Susannah Streeter, Chief Investment Strategist at Wealth Club club, said “the mega takeover… demonstrates how overseas players are sniffing out untapped value in UK companies.”
She added that “with yet another big name turning private, it will be a blow to the London Stock Exchange.”
“With global whales swallowing big fish in the UK pond, it limits the availability of listed assets for funds. This is partly why private market opportunities are increasingly attractive, given that opportunities to invest in listed companies are declining.”
The combined group will have a presence in more than 40 markets, including in some of the world’s largest financial centres.
It is expected that for at least 12 months following the completion of the deal that Schroders will continue to operate a standalone business within the wider Nuveen group.
Schroders will continue to be led by Oldfield, who will report to Huffman and becme a member of the Nuveen Executive Management Team.
Schroders’s struggles
The UK asset manager has struggled in recent years, facing increasing criticism for its high cost base and slower organic growth in its private markets arm.
The group’s share price has plummeted 23 per cent in the last five years and had a market close of $10bn at Wednesday’s close.
However, in its latest results the group returned to organic growth, with over 70 per cent of client assets outperforming competitors, bringing its strongest performance since 2021.
Assets under management jumped six per cent to £823.7bn, up from £778.7bn the prior year, with its public markets business also returning to growth for the first time since 2021, reporting net inflows of £3.7bn.
Gross inflows reached £142bn.