Foreign investors are zeroing in on U. K.-listed companies, snapping them up at a pace fueled by low valuations. Public takeovers are on the rise. By the end of the third quarter, merger and acquisition deals involving these companies hit a hefty £75 billion ($99 billion). This almost doubles the £38.2 billion seen for all of 2025.
The role of international capital in this surge is undeniable. Foreign investors were involved in 72% of transaction volumes and made up a striking 94% of the total deal value. The persistent valuation gap between U. K. companies and their global peers has been a major driver, as noted by Patrick Sarch, who heads U. K. public M&A at White & Case.
This year has brought a noticeable uptick in hostile takeover bids. Four have been recorded, with two occurring in the third quarter alone. That's a big jump from just one hostile offer in 2025 and none in 2024. Alongside, White & Case identified 14 "bear hug" offers, where potential bidders put public pressure on company boards with generous offers.
The largest deals have been powered by international capital, both from listed investors and private equity firms. Seven out of eight transactions over £1 billion in the third quarter involved overseas funds.
Sonica Tolani, a partner at White & Case, pointed out the growing willingness of foreign bidders to disclose their terms and use shareholder pressure on boards. This strategy shows a better grasp of the U. K.'s regulatory landscape and a tactical use of public influence.
Sarch stressed that ongoing discounts will keep investors interested in U. K. companies, particularly those with global revenue streams, strong cash flow, and experienced management. The valuation gap between U. K.-listed firms and their U. S. counterparts is due more to market differences than business quality, according to Deutsche Bank's head of U. K. M&A.
A Deutsche Bank survey shows strong momentum for future M&A activity. It found that 87% of respondents expect an increase in U. K. M&A over the next year. Additionally, 71% believe buyers are more optimistic about U. K. companies compared to last year. Ives noted that international buyers are spotting chances to acquire solid, globally-focused businesses at appealing valuations, even when considering a takeover premium.
