Daniel Black
Hello,
Rachel Reeves this week promised to create a smoother process for M&A deals by providing more certainty on whether a deal might be subject to merger controls.
Sound familiar? That’s because the Tories made similar promises in the years post-Brexit, but in reality little was done to change the regulatory environment. Let’s see whether this one bears fruit.
And in other news:
- Worldpay’s Global Payments deal has been cleared by UK regulators
- Scottish Power’s owner explored a deal for its UK retail energy unit
- Canaccord Genuity is considering selling its UK wealth arm
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.
The rumour mill
- Apple, Google’s mobile systems face deeper UK antitrust scrutiny
- LSEG to sell 20% of clearing business, get bigger share of SwapClear profits
- Worldpay’s Global Payments deal cleared by UK antitrust watchdog
- Blackstone prices £507m CMBS linked to UK Warehouses
- Aviva unit, Astatine team up for €800m energy transition platform
- UK digital bank Monzo is said to weigh fresh share sale
- Brown & Brown agrees to acquire Pardus Underwriting
- Barclays unveils $670 million buyback, even as one-off charges hurt profits
- Barclays’ investment banking fees rise 9% amid Wall Street dealmaking boom
- Schroders’ assets swell to record £817bn
- SJP assets exceed £200bn as new charges take effect
- RSM creates US-UK tie-up and says other firms in network can join
- Alkermes is to enter sleep medicine market with $2.1bn Avadel deal
- Smiths Group to divest interconnect unit to Koch’s Molex
- LDC invests in Shoptimised
- PAI in talks to buy wealth management firm Cyrus
- Canaccord Genuity explores sale of UK wealth arm
- CityFibre is in talks to buy full fibre company Netomnia
- JS Group brings in new funding with minority share sale to NatWest
- Scottish Power’s owner explored deal for UK retail energy unit
- ITV shares sink after John Malone’s Liberty halves its stake
- Pizza Hut UK to close 68 restaurants, 1,210 jobs to go
- John Textor loses key UK ruling in $93m clash with Iconic
- Dublin office woe hit PE firms from Blackstone to Brookfield
Industry news
- UK borrowing hits five-year high
- UK borrowing costs fall in boost for Rachel Reeves
- Reeves vows smoother UK mergers as part of a push to cut red tape
- UK inflation unexpectedly holds steady at 3.8% in September
- UK pension funds lift private markets allocations but remain below government targets
Job moves
- An HSBC banking MD in London has escaped to Goldman Sachs
- Barclays’ top London FX trader left for a hedge fund
Market trends
Overall, a decent Q3
UK dealmaking looks remarkably resilient heading into Q4. Private equity is having a moment: investment rounds nearly broke records in Q3, hitting around £54.4bn, while exits bounced back to roughly £25.3bn.
Strategic M&A has kept its momentum too, at about £35.4bn, with consumer and healthcare deals leading the charge, as reported by PitchBook.
Public markets are also perking up: UK equities are solidly in the green for 2025, with the FTSE All Share up by double digits so far this year, and we’re finally seeing a few new London IPOs get off the ground.
With the Chancellor’s Autumn Budget looming and widely expected tax hikes on the horizon, there’s a bit of uncertainty ahead. Still, the overall mood is cautiously optimistic.
European corporate activity
Continuing the optimism trend, European corporates are having their busiest year since 2021 after pushing forward with major strategic moves.
Just this week, Kering sold its entire beauty division to L’Oreal for €4bn, the latest in a wave of dealmaking across the continent. Companies are financing these plays through equity markets, with non-sponsor ECM issuance hitting over $93bn so far this year. Megadeals like Iberdrola’s €5bn capital raise and Orsted’s $9.4bn rights issue have driven primary capital to its highest level since the boom years of 2020 and 2021.
Counter-drone strategy
In not-so-good news, Europe’s push to build a counter-drone industry has become mission critical, especially as Russia ramps up incursions into NATO airspace. The EU wants anti-drone systems ready by 2027 and fully operational by 2030, and private capital is starting to flow.
According to ION Analytics, deal volumes hit a decade high this year at €264m, mainly led by Quantum Systems’ €160m Series C round in May.
Top limited partners
And finally, here’s a list of the top limited partners backing UK PE funds over the past five years, as ranked by PitchBook. Patria Capital Partners leads with 27 commitments, followed by BMO Private Equity Trust and Patria Private Equity Trust.
Fundraising
- UK’s BGF mulls targeting $672M for first external fundraise
- BC Partners’ new fund raises €1.8bn as first close nears
IPOs
- Shawbrook seeks up to £2bn valuation in London IPO
- Canned food firm Princes seeks up to £400m in UK IPO
