British companies worth £145billion were snapped up in 2024 – with just over half of the sum involving foreign buyers.
The total was a 51 per cent increase on the same period the year before, according to figures compiled by the London Stock Exchange Group (LSEG).
The takeovers came amid signs of a rebound for overall UK dealmaking, including both sellers and buyers, according to the report.
British companies worth £74billion were gobbled up by overseas buyers, a 21 per cent increase from 2023. That represented 51 per cent of the value of all British companies taken over.
They included the £3.3billion sale of Robinsons squash maker Britvic to Danish brewer Carlsberg and the acquisition of cybersecurity firm Darktrace by US private equity firm Thoma Bravo for £4.3billion.
All-British deals totalled £72billion, more than double the total seen in 2023.
They included Nationwide Building Society’s £2.9billion purchase of rival lender Virgin Money, and insurer Aviva’s £3.7billion takeover of smaller rival Direct Line.
Sold: Darktrace was acquired by US private equity firm Thoma Bravo for £4.3bn
The sale of UK-listed firms has helped to fuel fears about London’s diminishing status as a global listing venue.
Buyers based both in Britain and overseas have been taking advantage of bargain basement valuations to snap them up on the cheap.
The latest LSEG figures showed that the UK was the third most targeted country for mergers and acquisitions this year, after the US and China.
At the same time some London-listed firms have opted to switch listings to foreign exchanges such as New York – including Flutter, the gambling giant and owner of the Paddy Power brand, as well as equipment hire firm Ashtead Group.
There has been a dearth of new flotations in London to replace the departing businesses.
The decision by Cambridge-based Arm Holdings to hold its initial public offering in New York in 2023 was a particularly bitter blow.
Last year’s rise in the takeover of British firms contributed to a rise in the overall level of UK dealmaking involving UK companies. It increased by 33 per cent to £259billion.
However that compares to a thin year in 2023 which was the worst in terms of dealmaking in 14 years.
Lucille Jones, senior manager at LSEG Deals Intelligence, said: ‘Following a year of muted mergers and acquisitions activity in 2023 – as deals were put on hold amid geopolitical instability and elevated interest rates – we are seeing the beginnings of a mergers and acquisitions rebound in the UK.
‘The value of deals announced this year involving British companies has increased by a third compared with 2023, making the UK the most active hub for dealmaking in Europe.
‘While interest rates remain historically high, attractive valuations and a more stable dealmaking environment may stimulate more activity next year.’
