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Global asset manager Nuveen has agreed to acquire London-listed Schroders in a board-recommended all-cash deal valued at approximately £9.9 billion, a transaction that would combine two of the world's largest active investment managers and create a platform with nearly $2.5 trillion in assets under management.
Under the terms of the deal, Schroders shareholders will receive £5.90 per share in cash, totalling £9.5 billion, with the option to retain dividends of up to 22 pence per share prior to completion, bringing the total implied value to £9.9 billion. The transaction is expected to close in Q4 2026, subject to shareholder approval and regulatory clearances.
Nuveen, which manages $1.4 trillion in assets and is a subsidiary of TIAA, said the acquisition would give the combined group a presence in more than 40 markets. Schroders, listed on the London Stock Exchange under the ticker SDR, manages $1.1 trillion in assets and has historically operated as one of the UK's most prominent active asset managers.
William Huffman, Chief Executive Officer, Nuveen
William Huffman, Chief Executive Officer, Nuveen said:
“Through this exciting and transformational step for both of our distinguished firms, we look forward to welcoming Schroders into the Nuveen family. By bringing our complementary platforms, capabilities, distribution networks, and cultures together, we will create an extraordinary opportunity to enhance the way we serve our collective clients through access to new markets, bolstered product offerings, and deeper pools of investment talent. This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world by giving our leading, differentiated public-to-private platform a broader global presence.”
Schroders' chief executive welcomed the deal, framing it as an acceleration of the firm's existing strategic ambitions.
Richard Oldfield, Group Chief Executive, Schroders
Richard Oldfield, Group Chief Executive, 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. Together, we can create an exceptional opportunity to provide clients with a true breadth of high-quality solutions to meet their evolving needs."
The boards of both companies have unanimously approved the transaction. Schroders' directors who personally hold shares have irrevocably undertaken to vote in favour of the deal. Critically, the Schroders Principal Shareholder Group Trustee Companies, which act as trustees of various family trusts linked to the Schroder family, have also provided irrevocable undertakings to vote in favour, representing approximately 41% of the company's outstanding shares.
Dame Elizabeth Corley, Chair, Schroders commented:
Schroders chair Dame Elizabeth Corley said London would remain central to the enlarged business.
"The Combined Group will bring together two successful firms with shared values and highly complementary strengths to create a new global leader in public-to-private investment management. Building on Schroders' heritage, London will remain at the heart of this enlarged business and the Transaction will deliver an attractive premium in cash to our shareholders, reflecting the value of our business and its future prospects. The board of Schroders is confident that this is the right step for our shareholders, clients and people."
Under the terms of the agreement, Schroders will continue to operate as a standalone business within the wider Nuveen group for at least 12 months following completion. Richard Oldfield will remain as CEO of Schroders and will report directly to William Huffman, joining the Nuveen Executive Management Team.
|Nuveen said it expects London to serve as the combined group's non-US headquarters and its largest office, housing more than 3,100 professionals. The combined investment platform would span equities, fixed income, multi-asset, infrastructure, private capital, real estate, and natural capital, alongside a wealth management operation.
BNP Paribas is acting as financial adviser to Nuveen, with Clifford Chance LLP serving as legal adviser. The full terms of the transaction are set out in a joint announcement published under Rule 2.7 of the UK Takeover Code.
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