SD SDR Schroders plc Loading... : Bullish and Bearish Analyst Opinions

Nuveen is buying Schroders to create a $2.5T asset manager. Mid-sized active managers are "broken" due to the flight to passive. The only survival strategy is massive scale to lower costs and offer private market capabilities. This puts other mid-sized managers in play as acquisition targets. LONG Consolidation Targets in Asset Management. Regulatory blocking of mega-mergers.

Nuveen is acquiring Schroders for nearly £10 billion (approx. 30% premium). The deal is agreed. This is an arbitrage/event-driven situation. The premium validates the undervaluation of UK asset managers. LONG (if spread exists) or WATCH for sympathy plays in other UK Asset Managers. Regulatory hurdles blocking the deal (low probability given friendly nature).