‘We are going to run out’: Mitie marks eleventh mega takeover of 2026
Mitie’s takeover by rival facilities management group OCS marks the London Stock Exchange’s eleventh £1bn takeover so far this year, as the market continues to serve as a hunting ground for private buyers.
OCS agreed to pay 218.5p per share and a final dividend of up to 3.1p. The offer price comes at a 44.7 per cent premium on Mitie’s closing share price on 20 July.
The bid values Mitie at £3.1bn, making it the eighth most valuable live or completed bid in the UK in 2026.
Private buyers, including rival businesses and private equity firms, are swooping in across the FTSE, plucking off both mid-caps and market stalwarts.
Schroders agreed to be taken over by Nuveen for £9.8bn, while over on the FTSE 250 Rotork was picked off by Swiss firm ABB just last week for £4.1bn.
Russ Mould, investment director at AJ Bell, said: “This year is on track to see the highest number of deals worth at least £1 billion since the Covid pandemic.
“As a result of this flurry of fresh deals, the total value of live or completed bids for UK-listed companies could come to £69.3 billion if they all complete as planned.”
He added that “the total value of live or completed bids for UK-listed companies could come to £69.3 billion if they all complete as planned,” noting the sum “equates to 2.4 per cent of the total combined stock market capitalisation of the FTSE All-Share and the AIM All-Share indices.”
The surge of deals combined with a lack of IPOs is triggering fears the London market is shrinking at a worrying pace.
All share and soaring premiums
The FTSE all share has also contributed to the squeeze. The number of companies has decreased 11 per cent in the last five years, according to data from Aberdeen.
Meanwhile, there are nearly 300 fewer companies in the FTSE All Share and FTSE AIM all-share combined than five years ago.
The average price paid by acquirers relative to companies’ share prices has hit 45 per cent, according to data from AJ Bell, but some deals have seen premiums rise to punchier levels.
Rotork was taken on a 73 per cent premium, while Apollo has placed a £5.1bn bid for Easyjet, an 80 per cent premium.
Analysts have pinned the market’s lopsided nature on buyers looking to take advantage of the UK valuation gap between the UK and global competitors. Many potential buyers are still hunting for discounted offers.
Rebecca Maclean, investment director at Aberdeen Investments, said it is “not just a search for cheap assets”, with some companies receiving multiple takeover offers.
Segro rejected a third offer from US rival Prologis on Tuesday which valued the company at £13.5bn. Testing company Intertek also rejected three bids from EQT, arguing they undervalued the company, before accepting a £10.4bn offer.
Maclean said: “Public markets may have fallen out of love with dependable compounders, but strategic acquirers continue to recognise the value of businesses with durable competitive advantages, that generate strong cash flows, visible earnings, and returns comfortably above their cost of capital.”
“So while the UK has some great stories to tell, sooner or later we are going to run out of them.”
Stopping the wave?
The wave of takeover activity has prompted analysts and politicians to urge the government and regulators to do more to stem the flow.
Shadow business secretary Andrew Griffith called out “ivory tower financial regulators”, accusing them of failing to spend enough time dealing with the problems plaguing London’s competitiveness.
Others have called on the government to scrap stamp duty on shares in a bid to revitalise UK equity markets.
Garry White, chief investment commentator at Raymond James, said: “Attention will…likely turn to whether the Autumn Budget under the new Prime Minister Andy Burnham might include measures designed to enhance the attractiveness of London’s equity market and stem the flow of companies leaving the exchange.”
However, the Office for Budget Responsibility projects the tax will raise nearly £24bn in the next five years – making the levy an attract source of revenue for cash-strapped governments.