UK companies are being sold cheaply to foreign bidders
Garry White, chief investment commentator at Raymond James, comments: “The number and size of takeover bids from overseas buyers suggest that many UK-listed companies remain significantly undervalued. London Stock Exchange data shows that announced merger and acquisition activity involving UK targets exceeded $231bn by early July 2026, up 210% from the same point a year earlier. Foreign acquirers accounted for around 86% of the total deal value, with companies including easyJet, SEGRO, Beazley, Gamma Communications and Animalcare Group attracting bid interest.
“Overseas buyers and private equity firms see an opportunity to acquire high-quality businesses at valuations that compare favourably with those in their home markets. Even after offering substantial premiums to shareholders, many deals can still be justified on valuation grounds. The surge in takeover activity has been supported by the UK’s predictable regulatory framework for mergers and acquisitions, as well as favourable currency movements. Meanwhile, years of weak economic growth, the steady retreat of pension funds from UK equities and investors’ preference for faster-growing US markets have weighed on valuations, leaving many British companies trading below what bidders believe they are worth. It is clear that UK companies are currently being sold off on the cheap.”