Schroders, a historic British asset management firm, has agreed to a significant £9.9 billion takeover by Nuveen, a US investment group. This marks the end of over 200 years of family ownership for Schroders, which was founded in 1804 by Johann Schröder as a merchant bank in London. The acquisition will create one of the largest fund managers globally, overseeing around $2.5 trillion (£1.8 trillion) in assets.
Even though the takeover removes another major company from the London Stock Exchange, Schroders will continue to operate from London with about 3,100 employees and maintain its brand. This move raises questions about the competitiveness of the UK market, particularly as many companies have recently chosen to delist and operate in the US or Europe.
In recent years, Schroders has faced pressure, particularly from American rivals like BlackRock and Vanguard, who offer lower-cost investment options. To address rising costs and a declining share price, Schroders launched a £150 million cost-cutting initiative. CEO Richard Oldfield, who took over in late 2024, has already made significant changes by winding down various operations, including partnerships and international ventures.
Interestingly, just last July, Oldfield dismissed rumors that the Schroder family was considering selling their stake. Their 44% share would be valued at about £4.4 billion following this takeover. Oldfield commented on the partnership with Nuveen, saying it aligns with their values and will provide exciting opportunities for their clients.
This deal comes at a time when consolidation in the financial sector is common. According to a 2023 report by PwC, global mergers and acquisitions are rising, with firms looking for growth amid stiff competition. The merger reflects a trend where larger firms seek to strengthen their market presence through strategic partnerships.
The terms of the acquisition include 612p per share, offering a premium to Schroders’ recent stock price. The deal is expected to finalize by late 2026, pending shareholder approval. As the landscape of asset management continues to evolve, it will be interesting to see how this partnership impacts both companies and their clients moving forward.
