CC, Slaughters lead on £9.9bn takeover of FTSE 100 Schroders

Clifford Chance is acting for Nuveen, the asset management arm of US pensions giant TIAA, on its £9.9 billion takeover of FTSE 100-listed Schroders, advised by Slaughter and May.

The deal is one of the most significant UK public M&A transactions in the asset management sector in recent years. Together, the combined group would have about $2.5 trillion in assets under management.

Scale wins

For the City, it is a big moment. Schroders is one of London’s longest-standing listed asset managers, and the combination underlines the continued push for scale in a sector grappling with margin pressure, regulatory complexity and a structural shift towards passive and private markets.

The Schroders brand will be maintained and London will serve as the combined group’s non-US headquarters. The company also pledged its commitment to the UK, stating that if the combined group were to IPO in future, it would intend to include London as one of its dual listing venues.

What they said

William Huffman, chief executive of Nuveen, said the complementary platforms will enhance client service “through access to new markets, bolstered product offerings, and deeper pools of investment talent. This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world”.

Dame Elizabeth Corley, chair of Schroders, said: the move will “bring together two successful firms with shared values and highly complementary strengths to create a new global leader in public-to-private investment management. Building on Schroders' heritage, London will remain at the heart of this enlarged business”.

Advising

Clifford Chance’s corporate team is led by Nuveen relationship partner Nicholas Rees alongside corporate partners David Pudge and James Bole. Financial regulatory advice is led by partner Simon Crown, with antitrust led by partner Jennifer Storey, and financing aspects led by London partners Nick Kinnersley and Richard Day and New York partners Jason Ewart and Thomas Critchley.

Slaughter and May’s team is led by corporate partners James Cook, Richard Hilton, Hemita Sumanasuriya and senior partner Roland Turnill. Financial regulation is led by partners Nick Bonsall and David Shone, with competition advice from partners Lisa Wright and Jonathan Slade.