Mitie Becomes Latest London Firm Targeted in £70 Billion Takeover Frenzy
Outsourcer backs £3.1 billion offer from rival OCS Group, potentially netting boss Phil Bentley a £50 million windfall.
Mitie has become the latest London-listed company to be targeted in a significant takeover as deal-making activity in the UK reaches £70 billion this year. The FTSE 250 outsourcer announced it has backed a £3.1 billion offer from its private-equity-owned rival, OCS Group.
This deal represents the eighth-largest bid for a London-listed company in 2026 and the eleventh valued at £1 billion or more, according to analysis by AJ Bell. The combined entity of Mitie and OCS would become one of the UK’s largest private-sector employers, with a workforce of 136,000 employees in Britain.
The surge in takeover activity has raised concerns that UK companies are undervalued on the London stock market, making them susceptible to acquisition by foreign entities. This trend is exacerbated by a shortage of new listings, as companies being taken over are not being replaced on the exchange. Several prominent companies, including Flutter, Ferguson, and Wise, have already departed London for rival markets such as New York and Amsterdam, while AstraZeneca has listed shares in the US in addition to the UK, fueling speculation about further moves.
In a separate but related development, British property investment company Segro rejected a £13.5 billion bid from American firm Prologis, with Prologis accusing Segro of being unrealistic about its valuation.
JP Morgan Chase boss Jamie Dimon has warned that high taxes are contributing to companies leaving London, advising Prime Minister Andy Burnham against further taxation on banks. Dimon stated that an uncompetitive tax system leads to capital outflow, moving to other countries.
The board of Mitie has recommended that its shareholders accept the offer from OCS, which is controlled by US private equity group Clayton, Dubilier & Rice. The offer is valued at 221.6 pence per share. If the deal is finalized, Mitie boss Phil Bentley is expected to receive approximately £50 million from his shareholdings, while 50,000 Mitie staff will collectively receive £124 million.
Dan Coatsworth of broker AJ Bell commented that the loss of another mid-cap company is a significant blow to the London Stock Exchange, which is already struggling with a scarcity of new stock market flotations.