Foreign companies plunge into a £145 billion takeover frenzy
British companies worth £145 billion were snapped up in 2024 – with just over half involving foreign buyers.
The total was a 51 percent increase on the same period the year before, according to figures from the London Stock Exchange Group (LSEG).
The acquisitions came amid signs of a recovery in overall UK dealmaking, including both sellers and buyers, according to the report.
British companies worth £74 billion were gobbled up by foreign buyers, a 21 percent increase from 2023. That represented 51 percent of the value of all acquired British companies.
These included the sale of Robinsons pumpkin manufacturer Britvic to Danish brewer Carlsberg for £3.3 billion and the acquisition of cyber security company Darktrace by US private equity firm Thoma Bravo for £4.3 billion.
The all-UK deals totaled £72 billion, more than double the 2023 total.
These included Nationwide Building Society’s £2.9bn purchase of rival lender Virgin Money, and insurer Aviva’s £3.7bn takeover of smaller rival Direct Line.
Sold: Darktrace was acquired by US private equity firm Thoma Bravo for £4.3 billion
The sale of UK-listed companies has fueled fears about London’s declining status as a global listed platform.
Buyers from both Britain and abroad have taken advantage of low valuations to snap them up cheaply.
The latest LSEG figures show that Britain is the third most targeted country for mergers and acquisitions this year, after the US and China.
At the same time, a number of London-listed companies have chosen to transfer their listings to foreign exchanges such as New York, including Flutter, the gambling giant and owner of the Paddy Power brand, and the rental firm Ashtead Group.
There has been a shortage of new IPOs in London to replace the departing companies.
Cambridge-based Arm Holdings’ decision to hold an initial public offering in New York in 2023 was a particularly bitter blow.
The increase in the number of acquisitions of British companies last year has contributed to an increase in the total number of UK deals involving British companies. It rose by 33 percent to £259 billion.
But that compares to the lean year in 2023, which was the worst in terms of dealmaking in 14 years.
Lucille Jones, senior manager at LSEG Deals Intelligence, said: ‘After a year of subdued M&A activity in 2023 – when deals were put on hold amid geopolitical instability and high interest rates – we are seeing the start of a recovery in M&A activity in Great Britain. -Britain.
‘The value of deals announced this year involving UK companies has risen by a third compared to 2023, making Britain the most active hub for deal-making in Europe.
“While interest rates remain historically high, attractive valuations and a more stable dealmaking environment could drive more activity next year.”