Schroders has agreed to acquire the UK advisory, fiduciary management and derivatives businesses of River and Mercantile Group for approximately £230m.

The businesses make up the solutions division of asset manager River and Mercantile and (as at 30 September) had £42bn of assets under management.

Schroders said the acquisition will enhance its pension offering.

James Barham, chief executive of River and Mercantile, will join Schroders to continue to lead the solutions division. He will report to Peter Harrison, group chief executive of Schroders.

Alex Hoctor-Duncan will succeed Mr Branham as CEO of the remaining River and Mercantile businesses following the completion of the sale of the solutions business.

The transaction is subject to the agreement of River and Mercantile’s shareholders and the Financial Conduct Authority.

Mr Harrison said: “This acquisition further enhances our ability to meet the increasingly complex needs of pension fund clients and is consistent with our growth strategy. The business brings with it a well-respected team, with a strong track record of success and is a good cultural fit with Schroders. We see significant opportunities from this partnership.”

River and Mercantile said the sale price represents a premium of 2% over its market capitalisation on 9 August, the day before the firm said it had received a number of expressions of interest in the solutions business.

Jonathan Dawson, chair of River and Mercantile, said the board of the asset manager believes the price and terms are attractive and encouraged shareholders to vote in approval of the sale.