London Stock Market Faces 'Rapid Depopulation' Amid Foreign Takeovers and Listing Drought, Report Warns

The London stock market is experiencing a "rapid depopulation" driven by a surge in foreign takeovers and a scarcity of new companies choosing to list in the UK, according to a report by City broker Peel Hunt. The analysis reveals a stark imbalance, with a substantial number of UK-listed firms being acquired by overseas predators and very few new initial public offerings (IPOs) to replace them.

Since the beginning of 2023, 154 completed or proposed bids for UK-listed companies valued at over £100 million have been recorded, totaling £165 billion. In contrast, during the same period, only 11 UK IPOs of similar size have occurred, collectively raising £6 billion. This trend suggests a significant net outflow of companies from the UK's public market.

Overseas Bids Outpace Domestic Listings

The report, titled "Selling the family silver," indicates that overseas bidders are responsible for 62 percent of the total value of bids for UK-listed firms this year. So far in 2026, there have been 29 bids totaling £61 billion, a notable increase from 40 bids valued at £35 billion for the entirety of 2025. The situation is exacerbated by companies choosing to list abroad, with eight UK-based firms worth a combined £330 billion opting to float in international markets. Seven companies have also moved their existing listings overseas, representing a value of £120 billion.

Charles Hall, head of research at Peel Hunt, expressed concern over these trends, stating, "The number and value of bids for UK companies are running at exceptionally high levels, raising concerns that the UK equity market is seeing a rapid depopulation. To say that the UK has a problem in retaining companies and listing new ones would be a massive understatement."

Factors Contributing to the Exodus

The report attributes the current situation to several factors, including the cheap valuations of British companies, an outflow of domestic capital, and the UK's open market policies regarding foreign bids. Despite recent reforms aimed at enhancing London's appeal as a listing venue, Peel Hunt warns that without further intervention, the current trajectory is likely to persist.

Peel Hunt suggests potential remedies, such as implementing tax incentives for pension funds and ISAs to encourage investment in UK businesses, and offering capital gains tax relief for founders who choose to list their companies in the UK. The report's findings come shortly after warehouse and data centres group Segro faced a £12.6 billion bid from U.S. suitor Prologis, which Segro described as an attempt to acquire the company "on the cheap." Similarly, Easyjet has been the target of multiple offers from U.S. firm Castlelake, with the airline rejecting a £4.9 billion bid while indicating openness to a more favorable offer.