The London stock market faced renewed pressure as three UK-listed companies – Bodycote, Gamma Communications, and Capricorn Energy – announced they have agreed to takeover offers. These deals represent the latest in a trend of foreign acquisitions and departures from the city, raising concerns about London's standing as a global financial hub.
Industrial coatings firm Bodycote has unanimously recommended a £1.85 billion takeover offer from U.S. private equity firm Veritas Capital. This offer, which outbids Dutch private equity giant CVC, values Bodycote at 940 pence per share, comprising 932.8 pence in cash and a 7.2 pence interim dividend. This represents a 34.5 percent premium to the company's share price before takeover speculation began in May.
Separately, Gamma Communications has agreed to a £1.08 billion takeover by UK buyout firm Epiris. This agreement follows recent talks with Netherlands-based Waterland. Under the terms, Gamma shareholders will receive 1,120 pence in cash per share, valuing the company's equity at £1.02 billion. This marks a 53 percent premium to its share price after interest in the group emerged months ago. Gamma had previously been in discussions with Epiris in May, fending off interest from firms including Providence Equity Partners and Oakley Capital. Epiris stated that private ownership will allow Gamma to increase investment and focus on long-term sustainable growth.
The deals follow a pattern of high-profile companies exiting the London Stock Exchange this year. EasyJet agreed to a £5.7 billion takeover by private equity firm Apollo, and Flutter, the owner of Paddy Power, recently delisted from London to focus solely on its New York listing.
In another transaction, Norwegian oil firm DNO has agreed to acquire UK-listed Capricorn Energy for $396 million (£292 million), surpassing a rival bid from Genel Energy. Capricorn had withdrawn its support for Genel's $4.74 per share offer in July after DNO presented a superior offer of $5.214 in cash per share. DNO's interest in Capricorn emerged weeks after its own attempt to acquire Genel was rejected due to valuation concerns.
Analysts expressed concern over the continued trend of UK companies being acquired by overseas buyers. Chris Beauchamp, chief market analyst at IG, noted that the latest announcements dashed any hopes that the exodus of FTSE companies to foreign buyers had ceased. He described London as a "bargain bucket" for potential acquirers and stated that the news is another setback for the London Stock Exchange, the City of London, and the government in their efforts to maintain the importance of London's financial markets.
Following the announcements, Bodycote shares rose 4.44 percent to 953.5p in early trading, while Gamma Communications saw a slight increase of 0.79 percent to 1,149p. Capricorn Energy's stock jumped 7.58 percent to 369p.