Nuveen’s £9.9 billion takeover of Schroders will generate an estimated £37.8 million in legal fees, with Clifford Chance and Slaughter and May leading on the deal.
The legal bill is still dwarfed by banking fees, with Wells Fargo, Barclays and JPMorgan set to split £82.9 million advising Schroders.
The legal bill for Nuveen’s £9.9 billion takeover of storied City asset manager Schroders is expected to reach £37.8 million once the deal completes.
The takeover’s scheme document shows that the Nuveen vehicle making the acquisition is set to pay £14.3 million in legal fees. Lead counsel Clifford Chance is expected to take home the lion’s share of this pot.
Schroders, meanwhile, is set to pay out £23.5 million in legal expenses, most of which will be received by lead adviser Slaughter and May.
The deal, agreed in mid-February, spells the end of 200 years of family ownership at the historic financial services company. It will create one of the world’s largest fund managers and see Schroders delist from the London Stock Exchange.
Big bills everywhere
The Schroders deal is the latest example of the hefty legal fees attached to blockbuster public M&A transactions.
Qualcomm’s takeover of Alphawave last year saw total fees of £32 million, with Paul Weiss and Linklaters leading on the takeover of the UK chipmaker.
Elsewhere, A&O Shearman and Slaughters collected large paydays on American Axle & Manufacturing’s takeover of FTSE-listed car parts maker Dowlais, a deal that set aside £36 million for legal costs.
While large, the legal fees are dwarfed by the investment banking fees attached to the Schroders deal. Wells Fargo, Barclays and JPMorgan will split £82.9 million for advising Schroders, while BNP Paribas is expected to receive £20 million for its work for Nuveen.
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