Schroders, a historic British asset management company, has agreed to a £9.9 billion takeover by the US investor Nuveen. This deal ends 200 years of family ownership and marks a significant change for the company, which will become one of the world’s largest fund managers, controlling about $2.5 trillion (£1.8 trillion) in assets.
The takeover means that Schroders will remain based in London, where it has around 3,100 employees, and it will keep its name. However, this deal adds to worries about the competitiveness of the UK stock market, as more companies, like Just Eat and Tui, have recently left the London Stock Exchange to join markets in the US and Europe.
Founded in 1804 by Johann Schröder, the firm started as a merchant bank and went public in 1959. In recent years, Schroders has faced pressure from competitors like BlackRock and Vanguard, leading to a decline in its share price. The company began a £150 million cost-cutting programme last year to improve performance.
Even though Richard Oldfield, the CEO, previously said that the family was not looking to sell, the £4.4 billion valuation of their stake has prompted interest from potential buyers. The takeover deal offers shareholders 612p a share, including cash and dividends. The agreement is still subject to shareholder approval and is expected to be finalised in late 2026.
Vocabulary List:
- Takeover /ˈteɪ.keɪ.vər/ (noun): The act of assuming control of a company by purchasing it or its shares.
- Ownership /ˈoʊ.nər.ʃɪp/ (noun): The state or fact of owning something.
- Competitiveness /kəmˈpɛtɪtɪvnəs/ (noun): The ability to compete effectively in a market.
- Valuation /ˌvæljuˈeɪʃən/ (noun): The process of determining the worth or value of something.
- Shareholders /ˈʃɛrˌhoʊldərz/ (noun): Individuals or entities that own shares in a company.
- Performance /pərˈfɔːr.məns/ (noun): The act of carrying out or accomplishing a task or function.
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