Nuveen to buy Schroders for $13.5 billion forming asset management giant
Schroders rose to the top Stoxx 600 It hit a 52-week high on Thursday after US fund management giant Nuveen said it would buy Britain’s largest independent wealth management.
The £9.9 billion ($13.5 billion) deal will create one of the world’s largest asset management groups.
Nuveen, the investment management arm of the Teachers Insurance and Annuity Association of America (TIAA), a retirement and insurance group, will acquire Schroders for up to 612 pence per share.
The deal would create a global fund management giant with almost $2.5 trillion in assets under management, including $414 billion in private market assets.
Shares in London-listed Schroders rose more than 28% in morning trading following the announcement.
Schröders PLC.
According to the agreement, the Schroders brand will continue to exist and the company’s headquarters will remain in London. Founded in 1804, Schröders currently manages around £824 billion in assets, around two-thirds of which are in the EMEA region.
Nuveen manages approximately $1.4 trillion in assets, 94% of which are in the Americas.
Schröders chairman Elizabeth Corley said in a statement that the transaction would provide shareholders with an “attractive premium in cash”.
Group CEO Richard Oldfield added that the deal “will significantly accelerate our growth plans to create a leading public-to-private platform with enhanced geographic reach and a strengthened balance sheet.”
“This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world by bringing a broader global presence to our leading, differentiated public-to-private platform,” said Nuveen CEO William Huffman.
