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Thames Water bidding war heats up

27 Feb 2025 Feb 27, 2025

UK 6 min read

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Hello,

The sale of Thames Water has taken a fresh twist. The FT revealed a new bid from CK Infrastructure worth £7bn, coming alongside rival offers from Covalis Capital and KKR.

It makes our rumour mill, alongside news that:

Football club takeovers fell 50% in 2024
National Grid is selling its US renewable unit for £1.37bn
Bain is targeting a £1.1bn takeover of defence firm Chemring

Thanks for reading, and connect with me on LinkedIn if you want to discuss how I can help with your next M&A deal.

Deal Tracker

Our weekly roundup of all the confirmed M&A deals in the UK.

Transaction	Sectors	Buyer	Buyer’s advisors	Seller’s advisors
01 IDHL acquired MTM Agency	Business Services	Integrated Digital Marketing Agency	–	–
02 CIP agrees to buy 480-MW offshore wind project in UK	Energy	Copenhagen Infrastructure Partners (CIP)	–	–
03 Topsun makes first UK renewables investment with Boom Power solar project	Energy	Topsun	–	–
04 Canaccord Genuity acquired Brooks Macdonald Asset Management International for £51m	Financial services	Brooks Macdonald	–	–
05 Metro Bank sold its £584m portfolio of unsecured personal loans	Financial services	–	–	–
06 GSK acquired IDRx for £1bn	Healthcare/pharma	GSK PLC	Leerink Partners	Centerview Partners
07 Bishop Street acquired MGA Landmark Underwriting	Insurance	Bishop Street	–	–
08 Supermarket Income REIT acquired nine Carrefour stores in France for £30.3m	Retail	Supermarket Income REIT PLC	–	–
09 Supermarket Income REIT sold a Tesco store in Newmarket to Tesco PLC for £63.5m	Retail	Tesco PLC	–	–

The Rumour Mill

Salaries and bonuses

Job moves

Market Trends

AI drives data centre deals in UK

The UK’s data centre market is heating up, presenting a major opportunity for the European M&A landscape. A new paper for Eight Advisory highlights how today’s AI demand is outpacing the existing infrastructure. With the UK government fast-tracking approvals for new data centres, even allowing green belt development, the sector could be set for rapid expansion.

In 2024, global data centre deals hit a record £110bn, with PE backing 85-90% of transactions. The UK saw 13 deals, trailing Germany’s 19, but remains a key European hub. However raising costs and energy constraints could push investors towards markets like Madrid, Milan or the Nordics.

The UK’s policy shift aims to retain its early leadership, but with new, more efficient models like DeepSeek emerging, questions remain over long-term demand.

M&A activity in UK recruitment industry

According to BDO’s new recruitment report, deal volumes in the UK recruitment M&A market grew by 49% in 2024. Overseas investment into the UK was up 78% year-on-year from 9 to 16 deals, with particular interest from the US, likely driven by favourable exchange rates.

Trade acquisition dominated, representing 62% of all deals. PE, while still influential at 29%, saw a shift toward smaller bolt-on deals.

UK CEOs growing confident

UK CEOs are increasingly optimistic, with 62% planning M&A moves in the next 12 months – a dramatic jump from 40% in September 2024. The latest research from EY shows that 82% of respondents feel optimistic about business prospects, as the UK remains the top destination for capital investment, with 52% of CEOs eyeing domestic opportunities.

However, 71% of respondents warn that rapid tech advancements, sustainability shifts, and geopolitical tensions will make compliance a key factor, separating industry leaders from laggards.