Foreign predators swooping on British companies at rate not seen for three years
By HUGO DUNCAN
Updated:
Foreign predators are swooping on British companies at a rate not seen for three years.
In a report that will fuel concerns over low valuations in the UK, the London Stock Exchange Group (LSEG) said the value of bids from overseas for British firms has reached £22billion so far in 2025.
That is up 48 per cent on the same period of 2024 and the highest level of first quarter merger and acquisition (M&A) activity for three years.
The report came as property company Warehouse REIT said it was ‘minded’ to back a £489million offer from US private equity giant Blackstone.
Lucille Jones, senior manager at LSEG, said: ‘UK inbound M&A increased almost 50 per cent as quality assets at attractive valuations continued to appeal, particularly to US buyers.’
Property is the most targeted sector so far this year, according to the report, which also highlighted the £1.6billion bid for GP surgery owner Assura by US private equity group KKR.
Going cheap: The London Stock Exchange Group said the value of bids from overseas for British firms has reached £22bn so far in 2025
A flurry of takeover activity in recent years has fuelled fears that firms on the stock market are undervalued compared with overseas rivals – making them vulnerable to predators.
British car parts maker Dowlais agreed to a £1.2billion take‑over by its US rival American Axle & Manufacturing in
January. Broker Hargreaves Lansdown left the London stock market at the end of last week following its acquisition by a consortium led by CVC.
Other companies to agree to takeovers by overseas buyers recently include packaging group DS Smith, cyber security firm Darktrace and Royal Mail owner International Distribution Services.
And while a host of companies have left the stock market due to takeovers, a dearth of new arrivals through so-called initial public offerings (IPOs) has seen the number of listed firms diminish.
Warehouse REIT looks set to become the latest to join the exodus after Blackstone this week proposed making a bid worth 115p a share.
Bosses at the property group yesterday said they ‘would be minded to recommend such an offer to shareholders’ should it materialise.
Warehouse REIT owns 69 estates worth £810million across the country, from Milton Keynes to Glasgow.
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