Bargain Britain lures foreign buyers as hostile takeovers surge

U.K.-listed stocks are in the crosshairs of foreign buyers, as persistently depressed valuations drive a surge in public takeovers.

New analysis by White & Case shows publicly-listed merger and acquisition deals values in the U.K. — the G7's fastest-growing economy — topped £75 billion ($99 billion) in the period to the end of the third quarter.

That's almost double the £38.2 billion for the whole of 2025 — with overseas money fueling the surge and the number of hostile approaches quadrupling this year.

International investors were involved in deals accounting for 72% of transaction volume, and 94% of aggregate deal value, White & Case said Thursday, drawn by what Patrick Sarch, head of U.K. public M&A at the law firm, called the "prolonged valuation gap" between U.K.-listed companies and their global peers.

The blue-chip FTSE 100 is by around 50% over the last five years.

This year has also seen four hostile offers, two of which emerged in the third quarter.

That compares to just one hostile offer in 2025, and none in 2024. White & Case also counted 14 so-called "bear hug" offers, in which potential bidders look to exert public pressure on boards through highly inflated offers.

International capital — both listed investors and private equity bidders — underpins the biggest deals, the law firm said, with overseas money involved in seven of the eight £1 billion-plus transactions during the third quarter.

This year's marquee large-cap deals include spice and seasoning mainstay McCormick's $45 billion acquisition of Unilever's food business, and U.S. fund management giant Nuveen's £9.9 billion (USTK) take-private purchase of Schroders, the U.K.'s largest standalone asset manager.

"We are also seeing more hostile offers and the growing use of bear hugs, with overseas bidders increasingly willing to make their proposed terms public and invite shareholders to put pressure on boards to engage," said Sonica Tolani, partner, global M&A and corporate at White & Case.

"This reflects deeper familiarity with the U.K. regulatory environment, and a willingness to use public pressure as a legitimate tool rather than a last resort."

Sarch said ongoing discounts means investors will "continue to target the U.K.'s world-class listed companies with global revenue profiles, strong cash generation and established management teams."

Oliver Ives, managing director, head of U.K. M&A at Deutsche Bank, said the valuation gap between U.K.-listed companies and their publicly-traded U.S. counterparts is primarily a reflection of those respective markets, rather than the underlying quality of the businesses themselves.

A new Deutsche Bank survey signals strong momentum ahead, with 87% of respondents expecting U.K. M&A to rise over the next 12 months, as 71% said buyers are more bullish on U.K. companies compared to last year.

"International buyers are seeing opportunities to acquire strong, internationally-exposed businesses at compelling valuations, even after accounting for a takeover premium," Ives said in a note Monday.