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UK Firms Sold Cheap: Foreign Takeovers Soar
4 Mar
Summary
- Foreign takeovers of British firms reached a four-year high of £65 billion last year.
- Deal values surged in the final quarter of 2025, reaching £27.4 billion.
- Analysts predict continued deal volumes with a significant increase in value.
Britain is experiencing a significant increase in foreign takeovers, with the value of such deals reaching a four-year peak of £65 billion last year. This trend has led to concerns that successful UK firms are being sold at a discount, potentially hollowing out the stock market. Several high-profile acquisitions occurred recently, including the £8.1 billion takeover of Beazley by Zurich Insurance and the £9.9 billion deal for Schroders by Nuveen.
The final quarter of 2025 marked a particularly strong period, with overseas takeovers soaring to £27.4 billion, a substantial rise from the previous quarter. This surge is attributed to international investors being drawn to the UK market's enduring attractions, such as generally favourable valuations and numerous undervalued companies, despite current economic fragilities.
Experts anticipate that deal volumes will remain steady, but the total value of these transactions is expected to climb considerably. Private equity firms are projected to play a significant role, targeting publicly listed companies across sectors like financial services, healthcare, technology, and defense. One such instance involves aerospace supplier Senior, which has received a joint bid from US investment firms Tinicum and Blackstone.
