US asset manager Nuveen has agreed to acquire London-listed Schroders for £9.9 billion, creating a $2.5 trillion investment giant. The deal will combine the two firms under one owner, with London as the group’s headquarters outside the US. Schroders stock soared on the news of the takeover bid.

Nuveen aims to expand its distribution globally and enhance its public-to-private offerings through the merger. Schroders sees the deal as accelerating its platform plans. Earlier collaborations with Hargreaves Lansdown and Apollo Global Management have already expanded access to private markets for investors.

The combined company will operate under the Schroders brand, with CEO Richard Oldfield staying on. Existing shareholders of Schroders will receive 590 pence per share, plus dividends up to 22 pence per share, a 29% premium to the Feb. 11 closing price. The board unanimously recommends the Nuveen offer.

Founded in 1804, Schroders went public in 1959, with the family retaining a stake. Heiress Leonie Schroder holds a 42% stake, valued at around £4.4 billion. The deal with Nuveen values the company at 17x adjusted operating profit for 2025, with the transaction expected to close in Q4 2026 pending regulatory approvals.

Nuveen has a history of acquiring European managers to expand globally. In 2023, it acquired a controlling interest in London-based Arcmont Asset Management to boost its direct lending capabilities. The latest merger with Schroders continues Nuveen’s strategy of international expansion through strategic acquisitions.

Read more at Morningstar: Nuveen’s Deal For Schroders Bolsters its Public-to-Private Offering