The £80bn takeover feeding frenzy: Bids for UK firms soar
A flurry of foreign swoops has seen the value of bids for British companies hit almost £80billion so far this year, new figures show.
Overseas buyers accounted for £63billion, or more than 80 per cent, of takeover offers in the UK from January to April, according to data from the London Stock Exchange Group (LSEG).
It comes as global dealmaking roars back, climbing by 31 per cent to more than a trillion dollars (£850billion) in the period.
The figures include agreed as well as rejected offers.
In the UK, mining giant BHP’s £31billion approach for rival Anglo American was the biggest.
Going cheap: Overseas buyers accounted for £63bn, or more than 80%, of takeover offers in the UK from January to April, according to data from the London Stock Exchange Group
The Australian-listed bidder saw its offer spurned but is seen as likely to come back for another tilt.
Also being pursued by a foreign predator is Royal Mail owner International Distributions Services (IDS) while others, such as cybersecurity firm Darktrace, have already succumbed.
The value of takeover activity with a UK target has climbed to £78billion from just £29billion at the same time last year.
And with four-fifths of the bidders from overseas, foreign firms have never been as dominant in Britain’s merger and acquisition (M&A) market.
Over the past decade they have typically accounted for around two-thirds of takeovers of UK firms.
The US dominated global dealmaking, representing 56 per cent of the total – the highest share in 25 years in the latest sign that the giant of world capitalism is continuing to outmuscle its rivals.
Seventeen of the largest 20 deals worldwide announced in the four-month period involved a US target but it was not a case of foreign predators swooping in, with all but one of them domestic takeovers.
Lucille Jones, senior manager at LSEG Deals Intelligence, said: ‘The rebound in deal making comes after a lengthy drought.
M&A plunged to a decade-low last year as geopolitical tensions, soaring interest rates and recession fears curbed the appetite for risk-taking.
‘While many headwinds remain, improved economic conditions and a more stable financing environment seem to be stimulating deal making, particularly in the US.’
However, globally, dealmaking still has not recovered to levels seen in 2021 or 2022.
And the total of £199billion in April alone – while 9 per cent up on last year – was down by 5 per cent compared with March.
The figures showed that the number of deals globally in the first four months of the year – at 14,017 – was nearly a third lower than in the same period of 2024.
But the value of M&A activity was boosted by an increase in the number of mega-swoops worth $5billion (£4billion) or more to 36, which was up from 2022, and the highest comparable tally since 2021.
In Britain, the most eye-catching activity has involved American and other overseas outfits taking advantage of bargain-basement valuations.
Darktrace has agreed to be swallowed up by the US private equity firm Thoma Bravo, for £4.3billion.
And packaging firm DS Smith’s board has backed a £5.8billion proposal by America’s International Paper.
IDS has rejected a £3.2billion approach from Czech businessman Daniel Kretinsky.
The takeover offers have added to much soul-searching in the City of London over the loss of British companies to foreign ownership.
Other deals, though, have been UK-on-UK affairs, with building society Nationwide buying Virgin Money for £2.9billion and housebuilder Barratt picking up Redrow for £2.5billion.