Schroders agrees to £9.9bn takeover by US investment giant Nuveen

British investment management firm Schroders has agreed to a takeover by US giant Nuveen in a deal worth £9.9 billion.

A newly formed subsidiary of Nuveen will acquire the business, which is one of the UK’s largest asset managers and is currently listed on the UK’s FTSE 100 index.

The deal will bring together the two companies to create an investment giant with almost 2.5 trillion US dollars (£1.8 trillion) of assets under management.

The firms said the Schroders brand will be retained, and London will act as the combined group’s head office outside the US, with around 3,100 staff.

Under the terms of the deal, shareholders have been offered £5.90 per Schroders share, plus dividends of up to 22p per share.

The transaction values Schroders’ entire share capital at around £9.9 billion.

Nuveen is a global investment firm that is owned by the Teachers Insurance and Annuity Association of America (TIAA), one of the world’s largest institutional investors.

Acquiring Schroders will have significant benefits to the UK as a global financial centre, and reinforce London’s position in global asset and wealth management, according to the firm.

Any potential plans to list Schroders or the combined group in the future would involve the London Stock Exchange as one of the dual listing destinations, it said.

The deal, subject to the approval of regulators, is expected to be completed during the final three months of 2026.

Richard Oldfield, Schroders chief executive, said: “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.

“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.”