The US$13.48 billion all-cash offer for UK asset manager Schroders by US peer Nuveen is seen as another blow to the London Stock Exchange.
As news media noted, the bourse is losing another major constituent. The acquisition is also seen as a blow to the London market in general. This, despite promises that Schroders will keep its brand and its London headquarters, and will relist in London if it ever goes public again.
There seems to be considerable scepticism to Nuveen’s pronouncement that the deal will “deliver significant benefits to the UK as a global financial centre…while reinforcing London’s role in global asset and wealth management”.
The sale confirms speculation from mid-2025 that the Schroder family was considering selling out. This followed a decline of about 40% in Schroders’ share price from the peak in 2021. The Nuveen deal premium was 29% above the pre-announcement close.
Last year, the Financial Times quoted Richard Oldfield, chief executive officer of Schroders, saying that representatives of the family were “tremendously supportive, they have made their statutory statement in the annual report that is very clear about their long-term commitment to the business.”.
Any UK entity wishing to keep Schroders under British ownership had ample time to act. Such plans, if there were any, clearly didn’t come off. The acquisition requires regulatory approval, but the UK is unlikely to block it.
The deal does reinforce broader trends in the asset management industry.
Last October, Morgan Stanley predicted a “transformative” five years of mergers and acquisitions in the industry, driven by lower margins, higher requirements for technology and artificial intelligence, and fiercer competition for capital. According to Morgan Stanley, consolidation would be “a critical driver of success” in this environment.
The Schroders/Nuveen deal seems to be following this script. The scale of their combined assets under management of about $2.5 trillion will be a major competitive benefit amid consolidation and the continuing push for lower fees driven by passive strategies. The board-recommended deal is expected to close towards the end of the year.
