26th Oct 2021 09:41
(Alliance News) - Schroders PLC has purchased River & Mercantile Group PLC's solutions business in a deal worth around GBP230 million, the asset manager announced Tuesday.
R&M said it would return most of the money received to shareholders.
Shares in R&M jumped 19% to 280.45 pence in London on Tuesday morning, earlier spiking to a new 52-week high of 301.00p. Schroders shares were up 1.0% at 3,601.00 pence.
The sale is expected to complete in the first quarter of 2022, Schroders noted, and is subject to approval by R&M shareholders and regulators.
The R&M solutions business, also known as the UK Advisory, Fiduciary Management & Derivatives business, had GBP42 billion of assets under management on September 30.
"This acquisition further enhances our ability to meet the increasingly complex needs of pension fund clients and is consistent with our growth strategy. The business brings with it a well-respected team, with a strong track record of success and is a good cultural fit with Schroders. We see significant opportunities from this partnership," commented Chief Executive Peter Harrison.
River & Mercantile, an advisory and asset management business, said it intends to return the majority of proceeds to shareholders while retaining sufficient funds both to ensure that its existing business remains well capitalised and to grow its asset management business.
Back in August, R&M had confirmed it was in talks to sell the fiduciary division. On Monday, Sky News had reported the Schroders agreement for GBP230 million.
By Will Paige; [email protected]
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