Nuveen to Acquire Schroders in £9.9 Billion Deal, Ending Two Centuries of Family Ownership
Schroders has agreed to a £9.9 billion takeover by Nuveen, a US investor, marking the end of two centuries of family ownership for the British asset management group.
Chicago-based Nuveen announced the deal, which will create one of the world's largest fund managers. The combined entity will manage approximately $2.5 trillion (£1.8 trillion) in assets.
Schroders will maintain London as its largest office, employing around 3,100 people, and will retain its established branding.
Market Context
The takeover means another FTSE 100 company will be removed from the London Stock Exchange. This move contributes to ongoing discussions about the UK market's competitiveness.
Several prominent companies, including Just Eat, Flutter, and Tui, have delisted in recent years, opting for markets in the US and Europe.
Company History and Ownership
Founded in 1804 by Johann Schröder, the company began its journey as a merchant bank in London. It first listed on the London Stock Exchange in 1959.
In 2000, Schroders divested its investment banking arm to concentrate solely on asset management.
The Schroder family, currently led by Leonie Schroder, holds an estimated net worth of £3.93 billion.
Financial Performance and Strategic Moves
In recent years, Schroders had been actively working to reduce costs following a decline in its share price. This financial trend had generated significant interest from potential buyers.
Last year, a £150 million cost-cutting initiative was announced to improve performance amidst intense competition from US rivals offering cheaper investment products.
CEO Richard Oldfield had previously denied speculation regarding a sale, despite the family holding a significant 44% stake in the company. The acquisition values the family’s stake at an impressive £4.4 billion.
Since November 2024, Oldfield has strategically divested several business units, including a joint venture with Lloyds Banking Group and operations in Brazil and Indonesia, streamlining the company's focus.
Transaction Terms
The deal is valued at 612p per share, representing a premium of more than one-third over Schroders' closing price on Wednesday.
This valuation includes 590p in cash and an additional 22p dividend.
Following the announcement, Schroders shares increased by nearly 30% to 587p on Thursday.
The transaction requires shareholder approval and is anticipated to be finalized in the fourth quarter of 2026.