Daniel Black
Hello,
Analysts have been saying for a while that British companies are relatively undervalued, and we’ve seen more evidence this week following a trio of takeovers.
On Monday we got news that Alphawave, Oxford Ionics, and Spectris were all subject to bids from US investors. Analysis in our Market Trends section looks at why the UK’s businesses struggle to scale into global players.
And in other news:
- KKR and Stonepeak have upped their Assura bid to £1.7bn
- EDF is set to buy EV charging company Pod Point, once valued at £350m, for £10m
- The government has eased its carried interest tax reforms
Thanks for reading, and connect with me on LinkedIn if you want to discuss how I can help with your next M&A deal.
Dealmaker spotlight
Continuing our focus on those working in the UK’s M&A industry, this week we spoke to Eric Faherty from Hentons Corporate Finance.
Eric explained how he got his start in corporate finance and offered helpful tips for anyone interested in pursuing a similar career. Read the article to find out more, and get in touch if you’d like to be profiled in our newsletter.
Deal Tracker
Our weekly roundup of all the confirmed M&A deals in the UK.
Industry news
- UK economy suffers worst monthly contraction since 2023
- Sterling near highs, gilt yields rise as Reeves delivers spending review
- Rachel Reeves unveils 3% NHS spending boost but cuts other budgets
- Trump to enact key parts of US-UK trade deal within days
- UK government eases proposed carried interest reforms
- UBS sees dealmaking fees falling by mid to high teens in second quarter
The rumour mill
- Takeover fever grips City as three UK firms receive US offers
- KKR and Stonepeak up Assura bid to £1.7bn
- Advent is in exclusive talks to acquire Reckitt’s Essential Home business
- EDF is set to buy EV charging company Pod Point, once valued at £350m, in a £10m deal
- Warehouse REIT reports double-digit profit growth ahead of takeover
- Bain Capital retreats after Craneware rejects takeover offer
- BP takeover would be a longshot due to size and complexity, Moelis bankers say
- Second of two suitors decides against offer for GlobalData
- BT eyeing possible takeover of Openreach customer TalkTalk
- IonQ buys UK Quantum Computing Startup for £0.79bn
- Ricardo accepts £280m takeover offer from Canada’s WSP Global
- Frasers weighs cash bid for Revolution Beauty but offer is not certain
- Oxford Instruments plans buyback after £60m NanoScience sale
- Advent’s Spectris £3.73bn takeover proposal gets board support
- Argentex shares rise as it rejects Lavide offer over funding shortfall
- Pri0r1ty Intelligence strikes deal to buy sports data firm Halfspace
- Empiric walks back unchecked comments as it mulls Unite merger
- US chipmaker Qualcomm agrees to buy Alphawave for £1.77bn
- AIB agrees to sell minority stake in AIB Merchant Services to JV partner Fiserv
- Mitie strikes £366m deal to buy Marlowe
- Rosebank eyes more acquisitions after sealing £1.4bn ECI deal, where it prepares to raise £1.14bn
- BC Partners to take majority stake in IGS Gebojagema
- Magnesium Capital to pick up UK’s ABEC
- Shuka Minerals to buy Leopard Exploration after clearing all hurdles
Salaries and bonuses
Job moves
- UBS UK high net worth boss Chris Oliver resigns
- Newton IM’s equity income head Jim Lydotes set to depart
- Ex-HSBC wealth boss Spring to head up Allfunds
- Quilter Cheviot CEO Andy McGlone steps down
- UBS hires investment banker Murphy for consumer deals
- Ex-Rokos Capital partner Luke Sadrian joins Fulcrum Asset Management
- Qube Research hunts for crypto quants to work weekends
- It’s ok: London’s laid off equity researchers are finding new jobs
Market trends
Great at start-ups, terrible at scale-ups
The UK has been producing promising start-ups but struggles to grow them into large companies, creating a lucrative hunting ground for foreign acquirers. Proving the point are this week’s deals: Oxford Ionics is being sold to US-based IonQ and Qualcomm’s $2.4bn deal for chip designer Alphawave.
According to the FT, the root cause for these missed opportunities is a £15bn annual funding gap in the UK that leaves mid-market companies starved of patient capital, forcing them to sell rather than scale-up domestically.
UK small businesses barely seek growth funding compared to European peers. As demonstrated by OECD data, the UK loan application rates lag dramatically behind other nations, most notably Belgium and France.
M&A as medicine
To put a different slant on the doom-and-gloom narratives about foreign raiders pillaging British assets, JOHCM’s Clive Beagles argues that M&A activity is proving to be the shock therapy companies in the UK desperately need. Complacent boards are finally being forced to address structural problems that have been ignored for years.
Beagles suggests that fear of 40-50% premium bids is compelling firms into “almost internal M&A”, by selling underperforming assets. Backing it up are companies like Curry’s, which surged 134% after divesting its forgotten Greek operations, while Johnson Matthey jumped 28% after the £1.8bn sale of its catalyst component business.
M&A ahoy!
A report from Mergermarket shows European shipping executives are embracing dealmaking to navigate industry uncertainty, with 35 transactions worth €5.3bn in 2025. This marks the highest YTD volumes since 2008.
Despite challenges from energy transition pressures (with 40% of bulk shipping tied to fossil fuels), fluctuating tariffs, and shifting trade patterns, leaders are following the philosophy that “the best deals can be made in turbulent times”, with major consolidation like the CMB.TECH- Golden Ocean merger and increased interest in joint ventures across the sector.
Deal activity hits five-year high in May
And finally, new data from Herbert Smith Freehills Kramer shows that M&A momentum continues to build, with May delivering 11 firm offers and 10 possible offers. This pushes 2025’s total to 30 firm offers versus 27 at the same stage last year.
Fundraising
IPOs
