Britain looks set for a fresh wave of foreign takeovers after figures showed they rose to a four-year high of £65billion last year.
Aerospace supplier Senior, valued at £1.2billion, could become the latest UK-listed firm to fall to overseas predators after a joint bid from US investment firms Tinicum and Blackstone was disclosed yesterday.
On Monday, Lloyd’s of London underwriter Beazley agreed to be taken over by Zurich Insurance in a deal worth £8.1billion.
And it followed the shock announcement earlier this year that two-centuries-old City institution Schroders had agreed to be taken over by US rival Nuveen for £9.9billion.
Figures yesterday from the Office for National Statistics (ONS) laid bare the growing trend for ‘inward’ mergers and acquisitions.
The £65billion value of companies sold to overseas investors last year has not been higher since 2021 when it stood at £76.7billion, the ONS figures showed. And the number of deals, at 799, is the highest since 2022.
Going cheap: Figures show that foreign takeovers of British firms rose to a four-year high of £65bn last year
The figures raise fresh fears that successful UK firms are being sold on the cheap – hollowing out the stock market and handing lucrative returns to foreign owners.
Last year’s completed deals included takeovers of Royal Mail owner International Distribution Services by Czech billionaire Daniel Kretinsky for £3.6billion and fast food platform Deliveroo by America’s DoorDash for £2.9billion.
The ONS data also showed a spike in overseas takeovers in the final quarter of 2025.
They rose to £27.4billion, up sharply from £7.6billion in the third quarter and the highest level since the second quarter of 2021. Analysts said there was little sign of any let-up.
Patrick Sarch, head of UK public M&A at law firm White & Case, said: ‘While confidence in the UK economy remains fragile, international bidders continue to be drawn to the UK market due to its enduring attractions, including relative valuations generally and many undervalued businesses.
‘Looking ahead, we expect deal volumes to remain broadly similar to current levels, but for deal values to increase significantly.’
Sarch pointed to the likely trend of bigger private equity swoops on publicly listed firms, especially in the financial services, healthcare and technology sectors, as well as defence-related companies.
Yesterday’s disclosure from Senior that it had received an offer from a consortium of Tinicum and Blackstone came after it revealed last week that it has had five takeover approaches in recent months.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you