Nuveen to buy Schroders in £9.9B deal, forming $2.5T asset manager

U.S. asset manager Nuveen has agreed to acquire British investment firm Schroders in a £9.9 billion takeover that will combine two long-standing financial institutions and create one of the world’s largest asset management groups.

Under the terms of the recommended cash acquisition, Schroders shareholders will receive a total value of up to 612 pence per share.

The offer includes 590 pence in cash plus permitted dividends of up to 22 pence to be paid before the transaction completes. The price represents a significant premium to Schroders’ recent trading levels.

The combined company will oversee nearly $2.5 trillion in assets under management, spanning both institutional and wealth channels.

The deal still requires shareholder approval and regulatory clearances and is expected to close in the fourth quarter of 2026.

Terms of the transaction and structure

Nuveen is part of the Teachers Insurance and Annuity Association of America (TIAA), a retirement savings group.

The takeover will be executed through Pantheon, LLC, a newly incorporated subsidiary of Nuveen, which will acquire the entire issued and to-be-issued share capital of Schroders.

If the permitted dividends are fully paid, the offer implies a 34% premium to Schroders’ closing share price of 456 pence on February 11, 2026.

It also represents a 47% premium to the three-month volume-weighted average price and a 61% premium to the twelve-month average.

The companies said the Schroders brand will be retained after completion, and London will remain the group’s largest office and non-US headquarters, employing about 3,100 professionals.

Schroders chief executive Richard Oldfield will continue to lead the firm once the acquisition is finalized.

Strategic rationale and growth ambitions

Executives from both firms framed the transaction as a strategic response to the increasing importance of scale in global asset management.

William Huffman, chief executive of Nuveen, said the combination would strengthen product offerings, distribution, and access to markets.

Richard Oldfield said the partnership would help expand Schroders’ long-term strategy, noting the transaction would “significantly accelerate our growth plans to create a leading public-to-private platform with enhanced geographic reach.”

The companies indicated that combining investment platforms and distribution networks would broaden global reach and deepen investment talent.

The combined group expects to channel more long-term capital into markets and reinforce London’s role as an international financial center.

Schroders has recently pursued restructuring efforts to improve growth.

Since taking over in November 2024, Oldfield has cut costs, exited smaller operations in Brazil and Indonesia, and ended a joint venture with Lloyds Banking Group focused on mass-affluent advisory services.

The firm has also partnered with US private equity group Apollo to develop wealth and retirement products.

Market pressures and industry consolidation

Founded more than two centuries ago, Schroders is one of the City of London’s oldest financial names.

However, its share price has fallen more than a fifth over the past five years, reflecting competitive pressures and shifts in the asset management industry.

The sector has increasingly favored larger firms capable of investing in technology, private markets, and global distribution.

The combined group may also consider a future initial public offering, with London potentially serving as one of the listing venues.

Dame Elizabeth Corley, chair of Schroders, said the agreement would create a new global leader in public-to-private investment management while providing an attractive premium to shareholders.

If completed, the takeover would end Schroders’ long-standing independence but position the business within a much larger global platform as the asset management industry continues to consolidate.