Home / Business and Economy / Schroders Sale: Tip of the Iceberg?
Schroders Sale: Tip of the Iceberg?
14 Feb
Summary
- UK firms face increased takeover interest from US buyers.
- Schroders, an investment giant, agreed to be acquired by Nuveen.
- Cross-border deal activity involving foreign buyers has surged significantly.
The shock £9.9 billion sale of Schroders to US investment manager Nuveen is being viewed as a potential harbinger of more cross-border acquisitions of UK companies by American entities. Azets, an accountancy firm, noted a substantial increase in deal activity involving foreign buyers, with US purchasers accounting for two-thirds of these transactions.
This trend suggests a significant rise in foreign takeovers, with Azets calling the Schroders deal merely the 'tip of the iceberg.' Factors making the UK attractive to overseas buyers include its mature industries, strong innovation culture, and globally competitive sectors. The acquisition of the 222-year-old investment giant Schroders by Nuveen has raised concerns about the growing number of UK-listed firms falling under foreign ownership.
The increasing proportion of dealmaking activity involving foreign buyers, up 30 percent according to Azets' advisors last year, indicates a continuing pattern. This influx of foreign investment is partly driven by UK business owners looking to divest and capitalize on current market conditions, potentially influenced by upcoming tax changes.
