Schroders agrees £9.9bn takeover by US asset supervisor in newest blow to London market

Schroders has agreed to a billion-pound takeover by a US asset manager, in another blow to the London market.

The investment giant has agreed a 612p per share takeover by Nuveen, part of the Teachers Insurance and Annuity Association of America – ending Schroders’ centuries-old independence.

Shareholders will receive 590p per share in cash, a premium of 29 per cent over Wednesday’s closing price, plus permitted dividends of up to 22p.

The £9.9billion deal will create one of the world’s largest asset managers with nearly $2.5trillion of assets, just months after chief executive Richard Oldfield said there was no intention to sell the business.

Both groups insisted that the Schroders brand will be retained and remain headquartered in London, which will be its largest office.

The deal is expected to close in the fourth quarter of 2026.  

Should Nuveen choose to float Schroders or the combined group in future, it ‘would intend to list on the London Stock Exchange as one of the dual listing venues.’

However, it marks another huge loss to the London Stock Exchange, which is seeing an exodus of big names as they are either taken private or list elsewhere.

Schroders has struggled in recent years, with shares down almost 25 per cent over the past five years, amid slower growth in its private markets business.

Its ‘transformation’ plan, which includes cost-cutting, is starting to pay off as the business upgraded its profit forecast after a flurry of new business last month. 

Nuveen said Schroders had made ‘significant progress’ in recent years, reflected in a recent boost to its share price.

Oldfield, who will continue to lead Schroders, said: ‘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.’

Shares in Schroders soared nearly 30 per cent at the open to 590p.