US-based Nuveen has agreed to buy asset manager Schroders in a deal worth £9.9bn, the companies revealed today in a shock announcement.
The surprise acquisition will create a business with roughly $2.5tn (£1.8tn) of assets. Nuveen will pay 590p per share in cash under the terms of the offer, with an extra 22p in dividends potentially due.
If the dividends are paid, the final takeover price of £9.9bn will represent 17x Schroders’ operating profit, the announcement said.
The takeover brings to an end 200 years of independence for Schroders. It is expected that Schroders will continue to operate as a standalone business for at least 12 months following the completion of the deal, according to the announcement.
Nuveen said it expects that London will serve as the combined group's non-US headquarters and largest office, with more than 3,100 professionals.
“Through this exciting and transformational step for both of our distinguished firms, we look forward to welcoming Schroders into the Nuveen family,", said William Huffman, CEO of Nuveen.
"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.”
The transaction is currently expected to close during Q4 2026.
