Update: Schroders agrees £424m offer for Cazenove

Schroders has agreed a £424m cash offer for Cazenove Capital in a deal that significantly strengthens its private banking, wealth management and funds businesses.

Cazenove's £17.2bn in assets under management will push Schroders' total AUM to £229.2bn, adding £5.1bn to its funds business and creating a £28.4bn private banking business. The acquisition will cost £394m, with Schroders setting aside an additional £29 million as the "effective future cost of existing deferred share compensation arrangements" for Cazenove employees. Schroders will continue to use the Cazenove name within its private banking unit, while Cazenove's UK and European equity, fixed income, multi-manager and absolute return managers will join its investment team. The de...