UK companies rank third in M&A takeover targets amid surge in activity

UK companies have seen a surge in merger and acquisition (M&A) activity this year, with UK-based firms being the third-most targeted globally. Data from the London Stock Exchange Group (LSEG) shows that a whopping US$182.9 billion (£148.8 billion) was spent on deals involving UK companies, up from US$132.5 billion in 2023.

In total, 6% of global M&A activity involved UK companies, a significant increase from last year’s 4%. The only countries with more M&A activity were the US and China. Interestingly, overseas buyers were responsible for 51% of the M&A deals involving UK firms in 2024, a 21% increase from the previous year. Domestic mergers also doubled in number.

The financial sector has been the most targeted in the UK this year, with notable bids for companies like Hargreaves Lansdown and Nationwide’s acquisition of Virgin Money. The Real Estate sector also saw a boost from activities like the Ministry of Defence’s military housing acquisition and the merger between LondonMetric Property and LXi REIT.

Overall, it’s clear that UK companies are attracting significant interest from both domestic and international buyers, making the UK a key player in global M&A activity.