Nuveen Acquires Schroders for £9.9bn, Ending 200-Year Independence (LSE: SCH)

Nuveen, a Chicago-based retirement services firm, has agreed to acquire Schroders for £9.9bn, ending the London-based asset manager’s 200-year independence. The deal, valued at 612p per share, a 34% premium to Schroders’ closing price of 456p, is expected to close by year-end. The merger will create a combined global asset manager with $2.5tn of assets, with Schroders and Nuveen operating as separate entities and London remaining the enlarged business’s non-US headquarters. The transaction is funded with £3bn in debt and will generate £4bn in proceeds for Schroders’ controlling family, who own about 44% of the firm.