US investment manager Nuveen has agreed the terms of a £9.9bn deal to takeover Schroders.
The combined group will have nearly $2.5tn (£1.8tn) of assets under management and under the terms of the agreement the Schroders brand will be retained and London will serve as the combined group’s non-US headquarters and largest office.
In a statement, Schroders said it remains committed to supporting the UK capital markets and, in the event that Nuveen were to consider an initial public offering of Schroders or the combined group in the future, Nuveen would – “subject to an appropriate analysis at the time” – intend to list on the London Stock Exchange as one of the dual listing venues.
William Huffman, chief executive officer of 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”
Dame Elizabeth Corley, chair of Schroders, added: “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.”
Richard Oldfield, group chief executive of 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.”
