Nuveen Acquires Schroders in £9.9bn Deal

Nuveen, a US-based asset manager, has agreed to a £9.9bn takeover of the renowned British firm Schroders. This acquisition will conclude the 221-year-old company's independent operation and marks a significant consolidation in the global asset management industry.

The offer values Schroders at 612p per share, including a 29% premium over its recent closing price, plus 22p in dividends. This deal, expected to close in the fourth quarter of 2026, aims to create one of the world's largest asset managers with substantial assets under management.

Despite the change in ownership, Schroders' established brand name and its significant London presence are expected to be maintained. This move comes as the asset management sector faces increasing pressure from passive investing and intense competition, leading many firms to seek scale.

Schroders' chief executive had previously denied intentions to sell, emphasizing the family's controlling stake. However, the company's share price had seen a decline over the past five years, and it was considered to be in a challenging market position. The acquisition is presented as a growth opportunity, not a cost-saving measure.

This transaction highlights a trend of consolidation within the asset management industry as firms grapple with fee pressures and the need to compete with larger global players. The deal's success will depend on integrating the two entities effectively while retaining key talent and operational strengths.