Cheap as chips: Buyers flock to buy British companies
Published: 14:15 03 Jun 2025 BST
Foreign buyers are snapping up British companies at a pace not seen in over two years - proof, if any were needed, that UK assets remain a bargain on the global stage.
Fresh figures from the Office for National Statistics show that the value of deals involving UK firms surged in the first quarter, with international takeovers hitting £19.2bn, up from £15.2bn in the final months of 2024.
Big-ticket acquisitions drove the increase, including Carlsberg’s £3.3bn swoop on Britvic and International Paper’s £5.8bn bid for DS Smith.
UK firms have been busy abroad, too, with outbound M&A jumping to £9.4bn, helped by Rio Tinto’s £5bn purchase of Arcadium Lithium.
Still, the number of deals actually fell, down to 395 from 497, as uncertainty kept some buyers and sellers on the sidelines.
The Bank of England noted signs of a rebound but said caution is still capping growth. Insolvencies and restructuring also remain slightly elevated year on year.
This year, the focus has been on bargain-basement mid-cap companies. May brought the busiest month for bids and approaches in a while, with companies H&T Group PLC (AIM:HAT), Deliveroo PLC (LSE:ROO) and Kinovo PLC (AIM:KINO, OTC:BILBF) among those receiving takeover offers.
