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Cazenove shareholders approve £424m acquisition by Schroders

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Cazenove Capital shareholders have approved a deal for the firm to be acquired by Schroders for £424m.

The deal was put to shareholders at a general meeting today. The move will see Schroders bolstered by Cazenove’s £17.2bn in assets under management, made up of £5.1bn in funds and £12.1bn in private banking.

Some 97.8 per cent of Cazenove shareholders voted in favour of the deal. Only 75 per cent approval was needed for the acquisition to take place.

The deal will significantly increase Schroders’ assets in both the private banking and UK intermediary space and brings its total assets under management to around £230bn.

Schroders has confirmed it intends to continue using the Cazenove brand within its private banking unit, while Cazenove has confirmed all of its fund managers will join Schroders.

Schroders says the acquisition will provide economies of scale, principally in UK funds distribution and infrastructure, which the asset manager expects will enable it to achieve pre-tax cost synergies of between £12m and £15m a year.

Schroders chief executive Michael Dobson said at the time the deal was announced: “This transaction creates a leading, independent private banking and wealth management business in the UK, and brings additional investment talent in complementary strategies across UK and European equities, multi-manager and fixed income to asset management.

“I am confident the transaction will create long-term value and benefits for clients, shareholders and employees.”

Cazenove Capital chief executive Andrew Ross added: “This is a very exciting development for Cazenove Capital.

“In combining with Schroders, we will create a pre-eminent independent private banking and charities business in the UK, with a broader capability covering investment management, financial planning, deposit-taking and lending services.”

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