London’s City witnessed a landmark moment in the financial sector on Thursday as the UK’s historic asset manager Schroders agreed to a £9.9 billion takeover by US investment firm Nuveen. The deal, which values Schroders at 612p per share including a dividend, will unite two major fund managers and create one of the world’s largest asset management groups.
Schroders, founded in 1804 and one of the oldest names in British finance, saw its share price jump nearly 30 per cent on the announcement. The deal ends more than two centuries of independence and broad family influence over the firm, in a significant development for both UK capital markets and the global wealth management industry.
A historic shift for a City stalwart
Schroders has long been a fixture of the London financial landscape, managing assets across a wide range of funds and investment products. The company’s roots stretch back to the early 19th century, and it has been a constituent of the FTSE 100 Index for decades.
Under the terms of the recommended acquisition, shareholders will receive 590p in cash per share plus a 22p dividend, representing a premium of around 29% to the firm’s share price before the deal was announced. The founding Schroder family, which holds a significant block of shares, has backed the transaction.
Nuveen, part of the Teachers Insurance and Annuity Association of America, manages around $1.4 trillion in assets. Combined with Schroders, the new group will oversee nearly $2.5 trillion (£1.8 trillion) in assets, making it one of the largest asset managers globally outside the biggest US incumbents.
Strategic rationale and industry context
Industry analysts view the deal as a response to the evolving dynamics of global asset management, where rising competition from low-cost passive investing giants and increasing demand for private market exposure have reshaped the landscape. Schroders has been expanding its presence in private markets and fixed income in recent years, while Nuveen brings scale, distribution networks, and complementary investment capabilities.
Schroders’ chief executive, Richard Oldfield, described the combination with Nuveen as a “transformative opportunity” that will create a more diversified and competitive firm. He emphasised that the Schroders brand will be retained and that London will remain a central hub for the combined business.
Despite strong recent performance, including a substantial rise in pre-tax profits, some investors expressed concern that the offer may undervalue Schroders. Critics note that, under Oldfield’s leadership, the company had made notable operational improvements, and continuing independently might have unlocked further shareholder value.
Implications for UK markets
The takeover echoes a broader trend of British firms being acquired by overseas buyers, particularly from the United States. This marks another high-profile departure from the London Stock Exchange’s roster of independent firms, raising questions among some market participants about the competitiveness of the UK’s financial markets.
However, supporters of the deal argue that scale is increasingly essential in global asset management. A larger combined business can leverage broader geographic reach, deeper product lines and enhanced client services, factors seen as critical in an era of intensifying competition from the largest global asset managers.
Regulatory approval and Schroders shareholder consent are required before the transaction can proceed. If successful, the acquisition is expected to be finalised in the fourth quarter of 2026.
What the future holds
For Schroders, the agreement represents both a culmination and a new beginning. Its historic journey as a family-linked independent manager will transition to a collaborative role within a larger global entity. Retaining the Schroders brand and London office base signals continuity, even as the firm’s strategic direction evolves.
For the UK financial sector, the deal is likely to be closely watched as a bellwether for future investment and consolidation trends. Market participants will monitor the integration process and the implications for clients, employees and shareholders of both firms.
This transaction may prompt further consolidation in European asset management, particularly among firms seeking scale and operational breadth to compete with international peers.
The story continues to develop.
