British firms under the spotlight
According to Bloomberg, the value of mergers and acquisitions involving British companies rose this year by over 250% to about US$150 billion.
The data show this is the highest level recorded at this time since 2015 and almost twice the average for the period.
Read also: The UK labour market is cracking. Companies are preparing for mass layoffs
The largest transaction this year involving a UK company is Unilever Plc, which agreed to sell its food division to US spice maker McCormick & Company for US$44.8 billion.
The deal, which will allow Unilever to focus solely on cleaning and personal hygiene products, disappointed part of the market, mainly due to concerns about the company’s global brands such as Hellmann’s and Knorr.
Experts note that since 2021 there have been only a handful of deals worth US$10 billion or more where the buyer was a UK‑based company.
This means the trend is driven mainly by foreign buyers, not domestic firms.
Nevertheless, “the revival in the UK transaction market is only a reflection of the overall trend that companies are increasingly freely closing deals in volatile market periods.”
“The UK is seen as an attractive target for international opportunists. Companies are considered cheap compared to counterparts in other markets, making them attractive to both strategic buyers and private equity funds,” the statement read.
Bloomberg says that in the coming weeks there may be further M&A deals worth billions of pounds.
“We want new companies to join the market as quickly as they are acquired,” said Laurence Hopkins, managing director of Morgan Stanley’s investment banking team.
Source: Bloomberg.
Read also: Real estate. New taxes will hit the wealthiest. Here’s how much flippers and owners of a few apartments will pay
See also: Will the dollar surprise again? The expert released a forecast for USD/PLN and EUR/USD. “It’s hard for me to believe there won’t be more fires.”
Starmer in the hot seat. Will politics disrupt business?
Bloomberg data show that since the start of the year only two public equity offerings in the UK have raised about US$600 million.
“Activity in this market has been weakening since 2021 amid general geopolitical and economic tensions, and government and regulatory actions aimed at easing market entry have not been in place long enough to bring measurable change,” the statement read.
The last weeks in the UK are marked by reports of problems with Keir Starmer, who is fighting to retain his position as prime minister and Labour Party leader.
Experts say the political crisis could threaten foreign investment inflows.
Jamie Dimon warned last week that his bank JPMorgan Chase & Co., a leading M&A advisor in the UK, will abandon plans to build a new headquarters in London if a government that does not support its business growth comes to power.
According to BBC, Starmer is ignoring mounting calls to resign after almost 90 MPs from his party urged him to step down and five ministers resigned.
Read also: The real estate market is cracking. “The year 2026 looks promising for buying an apartment.”
See also: The dollar before a “nervous and dynamic” move, will the euro fall? The expert released a forecast for USD/PLN and EUR/USD
Source: Bloomberg, BBC.
