Schroders announces £9.9bn takeover by Nuveen
The owner of Manchester’s City Tower is set to be acquired by the US-based company, with the two asset managers combining to hold a $2.5trn portfolio.
Schroders, which also manages No1 Spinningfields, the Mercure Manchester hotel, and 4 St Paul’s Square in Liverpool, currently has £824bn in its portfolio – equating to $1.1trn. The deal is a 612p-a-share offer, which is awaiting approval from stockholders.
If it goes through, Nuveen has agreed to maintain the Schroders brand. Schroders’ office in London will also become the combined company’s headquarters outside of the US and its largest office with around 3,100 employees. Schroders chief executive Richard Oldfield will continue in his role and will join the Nuveen executive management team.
Nuveen is part of the Teachers Insurance and Annunity Association of America and has been in business for 110 years – although is still considerably younger than the 220-year-old Schroders. Nuveen’s portfolio of assets under management is valued at $1.4trn.
Nuveen is familiar with the North West, having previously owned Cheshire Oaks, which it sold to LaSalle Investment Management in a £600m deal in 2022, and Manchester Fort in Cheetham Hill, which it sold to PGIM for an undisclosed amount last summer.
News of the deal broke yesterday. As of 11:25am this morning, shares in Schroders were down .43%.
BNP Paribas is providing financial advice to Nuveen, with Wells Fargo, Barclays, and JP Morgan Cazenove doing the same for Schroders.
Slaughter and May are acting for Schroders on the deal, with Clifford Chance representing Nuveen.
The deal is expected by company bosses to complete before the year’s out.
