Blue-blooded fund giant Schroders is to be sold to a US rival for £9.9bn, bringing its 67 years on the London stock market to an end.

The British money manager, which is one of the most recognised names in the City, has struck a merger deal with Nuveen, part of the Teachers Insurance and Annuity Association of America, a retirement savings group.

The proposed takeover will create one of the world’s largest asset managers with $2.5tn (£1.8tn) of assets, while ending Schroders’ independence after more than 200 years and dealing another blow to the ailing London Stock Exchange.

The deal is worth 612p per share, representing a 34pc premium to Schroders’ closing share price last night, which was 456p.

Despite quitting the stock market, Schroders’ chairman Dame Elizabeth Corley insisted London would “remain at the heart of this enlarged business”, serving as the combined group’s non-US headquarters.

Bosses also insisted that they did not intend to make any “material reductions” to the company’s headcount after the takeover, which is expected to close by the end of the year.

Schroders and Nuveen are expected to continue as standalone businesses.

Founded in 1804 by John Henry Schroder, the Schroders family still control around 44pc of the business, meaning they will make at least £4bn from the takeover.

Leonie Schroder and her cousin, Claire Fitzalan Howard, descendants of the founder, serve on the board.

Following the deal, Richard Oldfield, chief executive of Schroders, 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.”

William Huffman, chief executive of Nuveen, added: “This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world by giving our leading, differentiated public-to-private platform a broader global presence.”

While Schroders has been a fixture of the FTSE 100 for decades, its share price growth has stalled in recent years.

Last April, its valuation fell to its lowest point in a decade as its share price hit 302p.

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Its struggles have largely stemmed from savers turning towards cheaper passive funds, rather than paying a premium for Schroder’s market expertise.

The money manager has struggled to move beyond its roots in stock picking as more ruthless US fund giants such as BlackRock and Blackstone have embraced profitable alternative markets, such as private credit.

Despite an M&A spree over the years, buying up smaller alternative managers focused on private capital, Schroders has struggled to turn its investments into shareholder returns.

Under Mr Oldfield, who was appointed in November 2024, Schroders has undertaken a steep cost-cutting programme, looking to shave £150m off its bottom line.

Schroders’ exit from the London Stock Exchange will represent a significant blow to the market, with the City stalwart joining a growing exodus of FTSE giants.

Nuveen said that if it chose to relist the business in the future, it would dual-list the company on the London market and another exchange.

Founded in 1898 by John Nuveen, Nuveen is headquartered in Chicago and currently manages $1.4tn in assets, with a heavy focus on the US market.

The deal will be funded by cash and £3bn of debt.

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