Foreign takeovers to propel UK M&A volumes above £50bn
UK markets are bracing for a major bump in mergers and acquisitions with the total value of deals expected to top £50bn in 2025.
Fresh data from the Office for National Statistics showed the value of domestic deals jumped to £3.4bn in the second quarter, up £600m from the first three months of the year.
It came amid a total 501 changes in major share ownership marking an increase of 89 from the first quarter.
The value of UK firms taking over foreign companies halved to £4bn.
There was also a steep decrease in foreign firms snapping up UK companies, with a fall of near £12bn to £9.3bn
Patrick Sarch, head of UK public M&A at White & Case LLP, said: “This public market M&A activity is driven less by confidence in the UK economy, which remains fragile, than by the enduring attractions of the UK market”.
He added takeover activity would remain “robust” for the remainder of 2025 with the total value expected to top £50bn.
Foreign takeovers spook City
However, the rising activity came with concern of another boom in foreign takeovers, despite falling figures in the second quarter.
Sarch said a combination of private equity and strategic corporate bidders, “particularly from the US looking to make offers for UK targets” would spur deals.
This suggests bad news for the London Stock Exchange which has suffered a bruising as foreign giants swooped up British bargains.
Research from Peel Hunt in April showed 15 companies on the London Stock Exchange worth over £100m had faced acquisition bids since the start of 2025. Meanwhile, not a single firm worth over £100m floated in that time.
Overseas bidders represented 47 per cent of the bids, totalling nearly £9bn.
A number of deals from foreign giants have triggered major delistings including a trio of tech takeovers – all in the span of 24 hours – which topped £6.3bn.