Daniel Black
Hello,
As expected, the Bank of England held interest rates at 4% this week. Policymakers had to weigh up the problem of persistently high inflation against economic data showing low growth and increasing unemployment.
It comes as the US Federal Reserve reduced interest rates by a quarter of a percentage point, the first rate cut this year.
In other news this week:
- Octopus Energy is to spin off its tech arm, Kraken
- KKR is lining up £1.8bn in debt to fund its Spectris buyout
- Sainsbury’s ended talks to sell Argos to JD.com
As always, thanks for reading, and connect with me on LinkedIn if you want to discuss how I can help with your next M&A deal.
Share your thoughts on AI for a chance to win $100
How are you currently using AI during M&A deals? We’re surveying top dealmakers on how they use AI as part of a major research project.
Please complete this short survey and you’ll be entered into a prize draw to win one of three $100 Amazon vouchers.
Deal Tracker
Our weekly roundup of all the confirmed M&A deals in the UK.
Industry news
- LSEG launches Microsoft-powered Digital Markets Infrastructure platform for private funds
- LSEG shares are down 25%. What next for its data strategy?
- UK and US agree $42 billion tech pact to mark Trump’s visit
- Retailer Next warns UK economy faces years of ‘anaemic’ growth
- UK inflation holds steady at 3.8% in August
- UK economy failed to grow in July
- Bank of England holds interest rates at 4% amid concerns over inflation
The rumour mill
- Capgemini is selling around €3.25 billion of bonds to fund WNS deal
- Radian to buy UK-based Inigo for $1.7bn in specialty insurance push
- Octopus Energy plans to spin off technology arm Kraken
- Mandelson firm’s conflicts endured as losses blocked buy-out
- UK watchdog investigates Global Payments’ $24 billion purchase of Worldpay
- UK’s AO World boosts profit outlook and unveils share buyback, shares soar
- American Axle & Manufacturing Raises $2.3B for Dowlais Group Deal
- Bridgepoint-backed NMi Group to buy Phoenix Testlab
- BlackRock‑Backed HPS Weighs Sale of Nucleus Financial Platforms
- RedBird IMI scraps plans for ITV Studios bid
- Lansdown sells stake in Bristol City women’s team to Mercury 13
- KKR lines up £1.8bn debt package for Spectris buyout
- British real estate investor PRS REIT plans to sell unit for $881.2 million
- HPS Investment Partners mulls sale of UK wealth platform Nucleus
- Sainsbury’s ends talks with JD.com over selling Argos unit
- Bspoke establishes new retail arm after NFP deal
- Anglo’s swoop for Teck leaves bigger mining rivals on back foot
- Anglo-Teck merger to unlock Chile mine synergies, if Glencore signs off
Salaries and bonuses
- Notoriously demanding boss offers $200k for the most difficult job in finance. American hedge fund drops its average pay in London to only $580k
Job moves
- American bankers are moving to London while London bankers head for Dubai
- Alvarez & Marsal hires ex-Bain partner to lead European PE financial services team
- Insurance hires: Bspoke Group names CEO, Specialist Risk Group names CCO
- UBS names new investment bank leaders in major shake-up of upper ranks
- Stifel hires former Standard Chartered M&A boss Chohhan for London dealmaking team
- Deliveroo co-founder to step down post DoorDash takeover
- Mittal moves to increase influence over BT Group with board seats
- Evercore’s UK headcount jumps 11% as deal fees surge
Market trends
Huge spike in robotic investments
While most of us are still getting used to the idea that AI might one day handle our daily tasks, robotics firm Figure AI just raised over $1bn at a staggering $39bn valuation, making it the world’s 13th most valuable VC-backed company.
This mega-round reflects a broader robotics investment boom driven by AI advancement, with Q2 deal values increasing 170.5% quarter-over-quarter to $8.8bn across 221 transactions. And based on PitchBook Data, the sector is likely to smash 2024’s full-year total of $12.5bn, having already reached $12.1bn.
Of course, Figure isn’t alone in commanding these massive valuations. Its competitor Apptronik secured $403m in March, drone developer Tekever raised $500m in May, and SoftBank reportedly invested the same half of a billion USD into robot software specialist Skild AI.
M&A ‘stable’ in UK travel
As the last of the summer sun fades and Britain braces for another season of unpredictable weather, perhaps it’s time to plan your next getaway, or better yet, your next investment opportunity. According to Grant Thornton’s analysis, the UK travel M&A market “looks stable”, despite quarter-on-quarter swings.
The authors explain: “Q4 was distorted by capital gains tax changes, and Q1 was quieter as a result. What we’re seeing now is a return to a more consistent pattern.”
They also note that PE appetite remains strong, with deal volumes rising 29% in Q2 as funds pivot toward larger, strategic investments and control positions over minority stakes.
Europe’s FDI keeps on falling
Europe’s foreign direct investment hit a nine-year low in 2024, with FDI projects falling 5% to 5,383 amid muted economic growth, soaring energy costs, and geopolitical uncertainty.
While the UK remained among the top three destinations alongside France and Germany, it still experienced a 13% decline in projects as US investors increasingly kept dollars at home due to domestic incentives like the Inflation Reduction Act.
Despite this, the UK & Ireland region emerges as a bright spot for future investments, with 16% of survey respondents naming it a leading destination for the coming 2026, second only to Benelux at 18%.
IPO revival?
Europe’s IPO window has finally creaked open with SMG Swiss Marketplace Group’s upcoming $1.1bn listing, while Sweden’s NOBA Bank Group plans a Stockholm IPO valued at up to $3.7bn, which will make it Europe’s largest bank listing since 2017.
For what feels like the umpteenth time, London’s long IPO drought may also be showing signs of relief, with LED mask maker The Beauty Tech Group unveiling listing plans this week, alongside potential offerings from specialist lender Shawbrook Group and food company Princes Ltd, reports Bloomberg.
However, the contrast with US exuberance couldn’t be more obvious. The American market saw 10 large IPOs price in single week, including Swedish fintech Klarna with its $1.4 billion NYSE debut.
Fundraising
- ICG tops target of second European infrastructure fund
- Netley Capital raises $315M for UK’s first tertiaries fund
