Schroders shares soared on Thursday after agreeing to a recommended £9.9 billion takeover by Nuveen, the asset management arm of US insurance giant TIAA.
Under the terms of the transaction, Schroders shareholders will receive 590p per share in cash, plus permitted dividends of up to 22p. This represents a 29% premium to Tuesday’s closing price of 456p.
The offer values Schroders at 612p, assuming full dividend payment. That’s a 47% premium to the three-month average share price and 61% above the twelve-month average. The takeover price has been struck at a share price not seen since 2022.
The deal values Schroders at 17 times adjusted operating profit for 2025.
Schroders shares were 29% higher at 589.5p at the time of writing, reflecting strong shareholder support for the deal, which isn’t likely to face many hurdles.
Nuveen has secured irrevocable undertakings from the Schroder family interests and certain directors, covering approximately 42% of the company’s issued share capital.
The takeover was announced alongside full-year results, which showed Schroders’ AuM rose 6% to £823.7 billion over the past year as profit before tax jumped 21% of £673.8 million.
Creating a Global Giant
The combination will create one of the world’s largest active asset managers, with nearly $2.5 trillion in assets under management balanced across institutional and wealth channels.
London will serve as the combined group’s non-US headquarters and largest office, housing around 3,100 professionals. The Schroders brand will be retained.
Nuveen has indicated that any future listing of Schroders or the combined group would include London as one of the dual listing venues, subject to analysis at the time.
“In a competitive landscape where scale can help deliver benefits, in Nuveen we see a partner that shares our values, respects the culture we have built and will create exciting opportunities for our clients and people,” said Richard Oldfield, the Group Chief Executive of Schroders.
“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. Together, we can create an exceptional opportunity to provide clients with a true breadth of high-quality solutions to meet their evolving needs.”