The London stock market faced renewed pressure as three UK-listed firms—Bodycote, Gamma Communications, and Capricorn Energy—announced takeover offers, marking the latest instances of foreign acquisitions of British companies.
Industrial coatings firm Bodycote has unanimously recommended a £1.85 billion takeover bid from U.S. private equity firm Veritas Capital, surpassing an offer from Amsterdam-listed CVC. The 940p-per-share offer includes 932.8p in cash and a 7.2p interim dividend, representing a 34.5% premium over Bodycote's share price before takeover speculation began in May.
Gamma Communications has agreed to a £1.08 billion takeover by UK buyout firm Epiris. This deal follows recent confirmation of talks with Netherlands-based Waterland. Gamma shareholders will receive 1,120p in cash per share, valuing the company's equity at £1.02 billion, a 53% premium to its share price after initial interest emerged months ago. Epiris stated that private ownership will enable Gamma to "invest further and focus on sustainably improving the growth of its businesses over the long-term."
In a separate transaction, Norwegian oil firm DNO has agreed to acquire UK-listed Capricorn Energy for $396 million (£292 million), outbidding rival Genel Energy. Capricorn withdrew its support for Genel's July bid after DNO offered $5.214 in cash per Capricorn share. This follows DNO's prior attempt to buy Genel, which was rejected over valuation concerns.
These agreements represent a continuing trend of foreign entities acquiring UK-listed companies, impacting London's standing as a global financial hub. Earlier this year, EasyJet agreed to a £5.7 billion takeover by private equity firm Apollo, and Flutter, the owner of Paddy Power, shifted its sole listing to New York.
Market analysts noted that these announcements dashed hopes of a halt to the outflow of FTSE companies to overseas buyers. The series of takeovers, including that of easyJet announced just last month, suggests that London's market remains attractive to foreign investors. The ongoing trend is seen as a blow to efforts by the London Stock Exchange, the City of London, and the government to maintain the importance of London's financial markets.