Nuveen Asset Management, a global asset manager under the U.S. teachers' pension fund (TIAA), will acquire the U.K.'s Schroders. The acquisition will create a mega active asset manager with $2.5 trillion in assets under management (AUM), or about 3,636 trillion won.
Nuveen Asset Management said on the 24th that it agreed to a cash acquisition based on a board recommendation with Schroders. Nuveen Asset Management plans to acquire all outstanding and to‑be‑issued shares of Schroders for about £9.9 billion (about 19.6137 trillion won).
Nuveen Asset Management currently has $1.4 trillion in AUM, and Schroders about $1.1 trillion. The combined organization will secure a network in more than 40 markets worldwide. In particular, it is expected to gain competitiveness in active management and advisory, and in wealth management (WM).
William Huffman, Nuveen's chief executive, said, "By combining complementary platforms, sales networks, and corporate cultures, we will strengthen our product lineup and provide new growth opportunities to institutional investors and asset owners around the world," adding, "This transaction will be a transformative catalyst that adds broad global reach to Nuveen's integrated public‑private platform."
Richard Oldfield, Schroders Group's chief executive, said, "In a market environment where economies of scale are key, Nuveen is the optimal partner to create new opportunities while respecting Schroders' culture," adding, "Through an improved financial structure and a stronger global footprint, Schroders' growth strategy will accelerate significantly."
Even after the acquisition transaction is completed, Schroders will operate as an independent enterprise within the Nuveen group for at least 12 months. CEO Richard Oldfield will continue to lead the existing Schroders organization.