One of the UK’s biggest investment managers, Schroders, will be taken off the London stock market after agreeing to be bought by a US rival for £9.9 billion.
The City stalwart is being sold to Nuveen, bringing an end to its decades-long listing on the London Stock Exchange (LSE).
The deal will bring together the two companies to create an investment giant with almost 2.5 trillion US dollars (£1.8 trillion) of assets under management.
London-based Schroders provides asset management, advisory and wealth management services, with around 5,500 employees in countries around the world.
It is a notable name in the City, having been founded more than 200 years ago by John Henry Schroder and his elder brother, and going on to list its shares on the LSE in 1959.
It sold off its investment banking arm in 2000 in order to specialise in asset management.
Under the terms of the deal, shareholders have been offered £5.90 per Schroders share, plus dividends of up to 22p per share.
The transaction values Schroders’ entire share capital at around £9.9 billion.
The Schroder family have retained a 42% stake in the business, meaning they are set to cash in on the takeover which values the shareholding at more than £4 billion.
Leonie Schroder and Claire Fitzalan Howard, descendants of the founder, are members of the business’s board.
Nuveen is a global investment firm that is owned by the Teachers Insurance and Annuity Association of America, one of the world’s largest institutional investors.
While the takeover will end Schroders’ stock market listing, Nuveen said it would be retaining the brand and that London will act as the combined group’s head office outside the US, with around 3,100 staff.
Dame Elizabeth Corley, chairwoman of Schroders, insisted that London “will remain at the heart of this enlarged business” which builds on the brand’s heritage.
Any potential plans to list Schroders or the combined group in the future would involve the London Stock Exchange as one of the dual listing destinations, according to the firm.
The deal, subject to the approval of regulators, is expected to be completed during the final three months of 2026.
Schroders chief executive Richard Oldfield said: “In a competitive landscape where scale can help deliver benefits, in Nuveen we see a partner that shares our values, respects the culture we have built and will create exciting opportunities for our clients and people.”
Schroders shares soared by nearly 30% on Thursday following the announcement.