Nuveen agrees to buy Schroders in GBP10b deal
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The news: US asset manager Nuveen has agreed to buy Schroders in a GBP9.9 billion ($18.96 billion) deal that would end the independence of the UK’s largest standalone asset manager.
The numbers: Schroders agreed to a 612 pence per share offer by Nuveen, comprising 590 pence in cash consideration and 22 pence in dividends to be paid by the FTSE 100 group to shareholders prior to deal closing.
The offer represents a 29% premium to Schroders’ closing price of 456 pence on Wednesday.
Shares in Schroders had surged over 28% at 11:00am GMT on Thursday (10:00pm AEDT) following the news.
The context: The deal is set to create one of the world’s largest active asset managers with almost USD2.5 trillion of assets and underscores the challenges faced by European and British asset managers as US rivals add pressure on costs and fees, forcing smaller players to consolidate.
Schroders has come under pressure in recent years over its high cost base and slower growth in private markets, with CEO Richard Oldfield denying rumours that the Schroders family, with a 44% holding, was looking to sell the business as recently as July.
Oldfield will continue in the role and will join Nuveen’s executive management team following the merger, which is expected to close in Q4 2026. Schroders will retain its brand name and London will remain as the group’s non-US headquarters and largest office.
On Thursday, Oldfield told the Financial Times: “This business was not and has never been up for sale…This isn’t the outcome of us surreptitiously doing an auction — I don’t think I’d have been able to keep that quiet.” Oldfield said Schroders agreed to the deal because it “saw a huge opportunity to create something powerful and unique” with Nuveen. He added that the deal was “not about saving money” but driving growth.
BNP Paribas is acting as financial advisor and Clifford Chance LLP acting as legal advisor to Nuveen. Schroders is being advised by Wells Fargo, Barclays and JP Morgan Cazenove, with Slaughter and May providing legal counsel, a filing showed.
