Deal creates one of the world's largest active manager shops

New York-based Nuveen, which entered the New Zealand market last year plans to acquire Schroders for £9.9 billion.

The deal will create one of the largest active global asset management firms in the world with US$2.5 trillion of assets under. management.

"The combined group will operate with significant scale and capabilities in the world’s largest financial centres with a presence in more than 40 markets in total," Nuveen chief executive William Huffman says in a release announcing the deal.

“This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world by giving our leading, differentiated public-to-private platform a broader global presence.”