Foreign Takeovers of UK Firms Double to £148 Billion, Reaching Five-Year High
The value of acquisitions by overseas buyers has surged, fueled by major deals and concerns over the undervaluation of British companies.
The value of foreign takeovers of UK firms has doubled to £148 billion in the current year, marking the highest level in five years, according to data from the London Stock Exchange Group. This surge has intensified concerns that the UK market is being targeted by foreign entities seeking to acquire British companies at low valuations.
Notable transactions contributing to this figure include the £13.5 billion acquisition of warehouse and data center owner Segro by US-based Prologis, and the £10.6 billion sale of product-testing firm Intertek to Swedish private equity group EQT. Other significant deals involve the sale of the two-century-old financial institution Schroders to US rival Nuveen for £9.9 billion, and the acquisition of Lloyd's of London insurer Beazley by Zurich Insurance for £8.1 billion. Low-cost airline easyJet was also acquired for £5.7 billion by US private equity firm Apollo.
The data reveals that the total value of deals where UK companies were the target increased by 75 percent to £184 billion. This growth was primarily driven by a 97 percent rise in 'inbound' transactions, where overseas buyers were the acquirers, reaching £148 billion. The United States accounted for more than half of these inbound deals, with 403 transactions totaling £75 billion. Buyers from France, Luxembourg, and Switzerland were also significant purchasers of UK firms.
Despite the substantial increase in the total value of inbound deals, the number of such transactions fell by 13 percent, suggesting that individual acquisitions are becoming larger in scale. Overall, announced deals involving any UK company participation saw a 52 percent increase, reaching £316 billion.
Conversely, the value of deals where British companies acquired foreign firms rose by 22 percent to £62 billion, although the number of these outbound deals also decreased by 13 percent to 931.
In related activity, two more UK-listed firms, Ashtead Technology and asset manager Pollen Street, worth a combined £1 billion, recently opened the door to potential private equity takeovers. These developments underscore the ongoing trend of foreign investment and consolidation within the UK corporate landscape.