Watches of Switzerland Shares Surge to Three-Year High Amid Foreign Takeover Interest
The luxury watch retailer's stock reached its highest point in over three years following reports of acquisition talks, reflecting a broader trend of overseas bidders targeting UK firms.
Shares in Watches of Switzerland experienced a significant boost, reaching a three-year peak after reports emerged that the company has been in discussions with potential buyers in recent months. The stock climbed as much as 8 percent to 778.5 pence, a level not seen since May 2023, before closing the trading day up 4.2 percent, or 30 pence, at 749.5 pence. This valuation places the FTSE 250-listed retailer, known for selling Rolex timepieces, at approximately £1.75 billion.
The increased interest in Watches of Switzerland, as reported by Reuters, occurs within a wider context of heightened takeover activity involving London-listed companies by foreign investors. Several major UK firms have recently become acquisition targets, including Lloyd's insurer Beazley, asset manager Schroders, and laboratory testing firm Intertek, all of which have been acquired by overseas entities. Additionally, the warehouse and data centre group Segro is currently fending off a £12.6 billion bid from an American competitor, while budget airline Easyjet is involved in a bidding war.
Other notable companies that have agreed to sales include Tate & Lyle and the owner of William Hill. This surge in acquisition activity has raised concerns about a potential exodus of companies from the London stock market. Patrick Sarch, a mergers and acquisitions expert at the law firm White & Case, noted that the UK has become "a highly attractive hunting ground for overseas bidders."