UK asset manager Schroders has agreed to a £9.9bn takeover by US investment manager Nuveen, according to a report by the Financial Times, following a series of approaches from the Chicago-based group.
Schroders’ board has backed a 612p-per-share offer, under which shareholders will receive 590p in cash plus a 22p dividend. Shares in the FTSE 100 firm jumped 29% to 589p on Thursday.
The deal brings together Schroders, which oversees £824bn of assets, with Nuveen, which manages around $1.4tn, largely across private markets and fixed income. Nuveen is part of Teachers Insurance and Annuity Association of America. Schroders Chief Executive Richard Oldfield said the combination represented a “huge opportunity to create something powerful and unique”, while Nuveen CEO William Huffman described the businesses as complementary in capability and culture.
If approved by shareholders, the transaction would create one of the world’s largest asset managers. It is supported by Schroders’ founding family, which holds a 42% stake.
Alongside the announcement, Schroders reported a 21% rise in pre-tax profit to £674m last year. The firms said London would remain the combined group’s largest office and that the Schroders brand would be retained. Completion is expected in the fourth quarter, subject to shareholder and regulatory approvals.
