The foreign acquisition spree on UK firms has gained momentum this year, with international buyers executing a series of high-profile deals to take over listed companies.
According to research from Bain & Company, deals initiated by foreign buyers targeting UK companies surged 55 per cent to $116bn (£91bn) in the ten months leading up to the end of October, with the number of deals rising by 24 per cent, as reported by City AM.
Conversely, the number of UK companies acquiring foreign firms fell by 10 per cent, and the value of these deals decreased by 24 per cent. "Despite strong balance sheets and a strategic need for M&A in 2024, dealmakers didn’t see the positive momentum they hoped for on interest rates, seller willingness to exit, and regulatory scrutiny that would drive a full recovery this year," commented Suzanne Kumar, executive vice president of Bain & Company’s M&A and divestitures practice.
Four mega-deals have boosted the value of UK takeovers: International Paper Co's acquisition of DS Smith (£5.8bn), Calsberg's purchase of Britvic (£3.3bn), EP Group's takeover of International Distributions Services (£3.6bn), and Iberdrola's acquisition of North West Electricity Networks (£4bn). In total, 73 UK companies have been acquired by foreign firms, while 43 have been taken over by other UK companies.
British firms took over 34 foreign companies. The total UK deal value had already exceeded 2023’s total by 83 per cent, which was the lowest year for mergers and acquisitions (M&A) since 2011.
The UK's most significant industries by deal value are also among the fastest expanding, with advanced manufacturing surging by 241 per cent, energy and natural resources increasing by 18 per cent, and financial services growing by 15 per cent. Overall, global mergers and acquisition deals are projected to reach a staggering $3.4 trillion (£2.7 trillion) in 2024, marking a 14 per cent rise from the previous year.
