Foreign buyers have significantly increased their acquisition activity in the U.K., fueling a surge in public mergers and acquisitions (M&A) this year. According to new analysis by White & Case, the value of publicly-listed M&A deals in the U.K. reached over £75 billion ($99 billion) through the third quarter of 2026, nearly doubling the £38.2 billion recorded for the entire year of 2025 [1]. Overseas investors were responsible for 94% of the total deal value and 72% of transaction volume, highlighting the dominant role of international capital in these transactions [1].
The number of hostile takeover approaches in the U.K. has quadrupled year-on-year, with four hostile offers in 2026—two of which occurred in the third quarter—compared to just one in 2025 and none in 2024 [1]. Additionally, there have been 14 'bear hug' offers, where bidders publicly pressure boards with highly inflated offers [1]. Seven out of eight deals exceeding £1 billion in the third quarter involved overseas money, underscoring the appeal of U.K.-listed companies to foreign buyers [1].
Notable large-cap deals this year include McCormick's $45 billion acquisition of Unilever's food business and Nuveen's £9.9 billion take-private purchase of Schroders, the U.K.'s largest standalone asset manager [1]. The blue-chip FTSE 100 index has declined by around 50% over the past five years, contributing to the valuation gap that is attracting international investors [1].
Industry experts attribute the surge in foreign-led takeovers to the 'prolonged valuation gap' between U.K.-listed companies and their global peers. Sonica Tolani of White & Case noted that overseas bidders are increasingly using public pressure tactics, such as bear hugs, reflecting greater familiarity with the U.K. regulatory environment [1]. Patrick Sarch of White & Case and Oliver Ives of Deutsche Bank both emphasized that ongoing discounts are likely to keep U.K. companies attractive to foreign buyers [1].
CONCLUSION
The surge in foreign-led hostile takeovers and public M&A activity in the U.K. is driven by persistently low valuations and a widening gap with global peers. With international investors underpinning the majority of large deals and employing increasingly aggressive tactics, the trend is expected to continue as long as U.K. stocks remain discounted.