Schroders to buy rival Cazenove for £424m

Fund manager Schroders has agreed a deal to buy smaller rival Cazenove Capital for around £424 million as it seeks to grow its private banking business.

Talks over the deal only emerged on Friday, taking the market by surprise, and Schroders chief executive Michael Dobson said: “I am confident the transaction will create long-term value and benefits for clients, shareholders and employees.”

Shareholders in Cazenove, which was set up in 1823 and manages £18.7 billion in assets, will receive 135p a share and chief executive Andrew Ross said the takeover was a “very exciting” development for the firm.

He added: “In combining with Schroders, we will create a pre-eminent independent private banking and charities business in the UK.”