Increased bids for British companies due to stable economy and low valuations attract dealmakers.
From Yahoo Finance: 2025-06-12 01:03:00
On Monday, over $10 billion in bids for British companies were announced, marking the busiest day this year. Low valuations and market stability attracted rivals and funds after a volatility-induced pause. Companies are seizing the opportunity before potential currency fluctuations make transactions more expensive. Notable bidders include Qualcomm, Advent, and L’Oreal.
CEO Niccolo de Masi cited Britain’s talent pool and geopolitical backdrop as compelling factors in IonQ’s $1.08 billion acquisition of Oxford Ionics. Governments seek “sovereign quantum networks,” he said, reflecting a desire for local solutions. 30 bids for UK companies valued over £100 million have already been made this year, compared to 26 at the same point last year.
Years of outflows from UK equities have made British companies attractive acquisition targets due to depressed valuations. The discount between FTSE 100 and S&P 500 benchmarks has decreased from a peak of 49.5% in January to about 41% now. Bidders are drawn to the relatively stable UK economic and political backdrop, making investments less risky.
Analysts note that the stable UK economic environment and predictable regulatory landscape make buying UK companies less risky than U.S. businesses. Trade deals signal that Britain is “open for business,” offering political stability. The pound’s strength does not deter global investors looking to seize opportunities before potential price increases.
This week saw the announcement of the largest bids this year, including Advent’s £3.7 billion bid for Spectris and Qualcomm’s £1.8 billion bid for Alphawave. Analysts expect more bids to follow. Economic uncertainties may impact the M&A market, but factors like a more predictable interest rate outlook and improved UK company balance sheets should encourage dealmaking. Technology and real estate are the busiest sectors so far this year, less susceptible to market volatility.
Read more: Analysis-As global tumult grows, UK Plc’s stability and bargains appeal to dealmakers