The merger of the American company Nuveen with the British company Schroders creates an asset manager with US$2.5 trillion in assets under management.

American firm Nuveen has agreed to buy British firm Schroders for £9.9 billion, approximately US$13.5 billion, in a transaction that ends the independence of the asset manager founded in 1804 and creates a group with approximately US$2.5 trillion under management and a presence in more than 40 markets.

According to data from the London Stock Exchange Group (LSEG), the deal would represent the largest acquisition in the asset management sector ever recorded in the Europe, Middle East and Africa (EMEA) region.

Nuveen is the investment arm of the Teachers Insurance and Annuity Association of America (TIAA), an American retirement and insurance organization, and reports having US$1.4 trillion under management. Schroders, on the other hand, manages approximately £824 billion (approximately US$1.1 trillion).

Under the announced terms, Schroders shareholders will receive up to £6.12 per share, comprising £5.90 in cash plus a dividend of £0.22. The Schroders board recommended the proposal. Completion is expected in the fourth quarter of 2026, subject to regulatory and shareholder approvals.

The agreement also implies the relinquishment of historical control by the Schroder family. Reuters reports that the family, a significant shareholder, has agreed to sell its stake of approximately 42%.

According to the terms released, the Schroders brand will be maintained, and the company will remain headquartered in London, which will also be Nuveen's base outside the United States. Schroders CEO Richard Oldfield will remain in his position.

According to the companies, the merger aims to accelerate Schroders' growth plans and expand the global presence of a public-to-private platform, with greater reach in wealth and institutional clients.

Nuveen says the transaction aims to "unlock growth opportunities" by scaling the platform globally. The combined group will have $414 billion in assets from private marketplaces.

The combined group's $2.5 trillion in assets under management places it slightly below Europe's largest fund manager, Amundi, but far behind the American giants BlackRock , Vanguard, and State Street.

The announcement and the day of the balance sheet.

The announcement of the agreement came on the same day that Schroders released its 2025 financial results. Adjusted operating profit rose 25% to £756.6 million, while assets under management increased 6% to a record £823.7 billion for the year. The company also reported £11.2 billion in net new business and proposed a final dividend of 15 pence per share.

Following the announcement, Schroders shares rose approximately 29%, ranking among the top performers on the London Stock Exchange. The shares reached the top of the STOXX 600 and hit a 52-week high in the post-announcement movement.

The asset management industry has been undergoing a consolidation movement, as larger US rivals like BlackRock and Vanguard sell cheaper index ETFs and other passive products, forcing smaller managers—and those more focused on actively selecting stocks, like Schroders—to join forces to compete.