Schroders has announced a £9.9 billion takeover by the US investment firm Nuveen, marking the end of 200 years of family ownership of this prominent British asset management company. This acquisition will form one of the largest fund management entities globally, managing around $2.5 trillion (£1.8 trillion) in assets.
This transition concludes Schroders’ longstanding independence. Despite the change in ownership, the firm plans to retain its London headquarters, which employs approximately 3,100 people, and will continue to operate under the Schroders name. However, this takeover also raises concerns regarding the competitiveness of the UK market, as it takes another company off the London Stock Exchange. Recent years have seen other firms, including Just Eat and Tui, leave the UK market for operations in the US and Europe.
Schroders was founded in 1804 by financier Johann Schröder, starting as a merchant bank in London. It became publicly listed in 1959, shifting focus from investment banking to asset management in 2000. The family, led by heiress Leonie Schroder, is estimated to have a net worth of £3.93 billion.
The company has faced declining share prices and implemented cost-cutting measures, which attracted potential buyers. Last year, it announced a £150 million initiative to improve performance amid increasing competition from firms like BlackRock and Vanguard. Richard Oldfield, Schroders’ CEO, recently denied that the Schroder family was interested in selling, although this deal values their remaining stake at £4.4 billion.
The transaction, offering 612p per share, is a significant premium over recent market prices and is subject to shareholder approval. It is expected to conclude in the fourth quarter of 2026.
Vocabulary List:
- Takeover /ˈteɪkˌoʊ.vər/ (noun): The act of taking control of a company by purchasing its shares.
- Acquisition /ˌækwɪˈzɪʃən/ (noun): The act of obtaining or acquiring something particularly in a business context.
- Competitiveness /kəmˈpɛtɪtɪv.nəs/ (noun): The quality of being able to compete effectively in a market.
- Independence /ˌɪndɪˈpɛndəns/ (noun): The state of being independent; self-sufficiency.
- Performance /pərˈfɔːr.məns/ (noun): The act or process of performing a task or function; the effectiveness of an organization or business.
- Premium /ˈpriː.mi.əm/ (noun): An amount of money paid in addition to the regular price or value often reflecting added value.
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