Foreign Predators Gobble Up UK Firms Worth £30.4 Billion in First Half of 2025

Strategic Insights -

The UK's stock market is attracting foreign investors, driven by concerns over Donald Trump's economic policies, and resulting in a record-breaking £30.4 billion worth of overseas takeovers in the first half of this year. This surge in foreign takeovers has surpassed the £11.9 billion of "outward" deals, where foreign businesses are being bought by British firms, over the same period. The pace of foreign takeovers has been particularly notable in the first three months of the year, reaching a total of £21.1 billion, the highest since the third quarter of 2022.

Key Takeaways:

  • The value of foreign takeovers of UK firms has exceeded £30.4 billion in the first half of 2025, making it the largest half-year total since 2021.
  • The surge in foreign takeovers has been driven by concerns over Donald Trump's erratic economic policies, causing foreign investors to shift their focus away from the US and towards the UK.
  • The pace of foreign takeovers has been particularly notable in the first three months of the year, with a total of £21.1 billion, the highest since the third quarter of 2022.
  • Patrick Sarch, head of UK public mergers and acquisitions at law firm White & Case, expects takeover activity in the UK to remain robust for the remainder of 2025 and may continue to increase.
  • Sarch believes that the UK will remain one of Europe's most compelling destinations for international acquirers due to its relative valuations and stability.
  • The takeover frenzy has seen several major UK brands fall into the hands of overseas predators, including auto engineer Dowlais, takeaway delivery app Deliveroo, microchip maker Alphawave, and scientific instrument maker Spectris.
  • Sarch does not think that 2025 will beat records for foreign takeovers of UK companies, either on value or number of deals, but 2026 could be a year to watch if sterling is lower and equity market strength remains robust.

Statistics:

  • £30.4 billion: total value of foreign takeovers of UK firms in the first half of 2025
  • £11.9 billion: total value of "outward" deals, where foreign businesses are being bought by British firms, over the same period
  • £21.1 billion: total value of foreign takeovers in the first three months of 2025
  • £9.3 billion: total value of foreign takeovers in the second quarter of 2025
  • PS48 billion: total value of UK companies bought during the pandemic
  • £76.7 billion: annual total for foreign takeovers in 2021
  • £190 billion: record total for foreign takeovers set in 2016

Sources:

  • The Mail on Sunday analysis of Office for National Statistics figures
  • Patrick Sarch, head of UK public mergers and acquisitions at law firm White & Case
  • White & Case
  • Office for National Statistics