Considered one of Britain’s largest fund managers is in superior talks to accumulate a division of one among its smaller rivals in a deal that can take its belongings beneath administration throughout the £750bn threshold.
Sky Information has learnt that Schroders might announce the acquisition of River and Mercantile Group’s (R&M) options enterprise as quickly as Tuesday morning.
Sources stated that Schroders, which manages £717bn on behalf of purchasers, has agreed to pay roughly £230m for the R&M unit, which has round £43bn of belongings beneath administration (AUM).
The sale value is predicted to be considered positively for R&M, representing a lift for AssetCo, the car taken over by fund administration veteran Martin Gilbert and which owns a sizeable stake within the firm.
It emerged in August that R&M had appointed Fenchurch Advisory and Lazard to subject bids for the group’s fiduciary arm, which manages cash for pension funds.
R&M has determined to concentrate on faster-growing and extra worthwhile companies as an alternative.
Earlier this 12 months, R&M poached a senior government from Abrdn, the group that Mr Gilbert helped to create as Aberdeen Asset Administration, to hitch its board.
For Schroders, the acquisition of the R&M Options enterprise would be the newest in a string of bolt-on acquisitions, a few of which have been targeted on the fast-growing space of pure capital.
Bloomberg Information reported in Could that Schroders had additionally explored, however determined in opposition to, a a lot bigger deal: a takeover of London-listed M&G.
Schroders and R&M each declined to remark.