Daniel Black
Welcome back to Teaser UK. After a short break we’re primed and ready for 2026, bringing you a bumper wrap up of news from the past couple of weeks.
Among the top stories in this edition:
- Accenture bought UK AI startup Faculty in a $1bn deal.
- Octopus Energy plans to sell its Kraken stake at an $8.65bn valuation.
- BP is to sell 65% of its Castrol unit to Stonepeak
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
- Amgen swoops on UK cancer biotech in deal worth up to $840mn
- Accenture buys UK AI startup Faculty in $1bn deal
- GRID agrees to acquire 297 MW of UK battery projects
- Bridgepoint agrees to buy former KPMG restructuring unit at £800mn valuation
- HIG Capital to sell Xtera to Prysmian and Fincantieri JV
- Octopus Energy to sell stake in tech unit Kraken at $8.65bn valuation
- Revolut in talks to buy digital bank FUPS for Turkey debut
- Bridgepoint opens negotiations to acquire a majority stake in Interpath
- Clearwater Analytics agrees to $8.4 billion takeover by Permira, Warburg
- TPG said to be nearing a deal to buy UnitedHealth’s Optum UK unit for more than £1bn
- BP to sell majority stake in $10bn Castrol to pay down debt
- Secure Trust sells car finance business to LCM for £459m
- Hg to acquire OneStream in $6.4bn deal
- Harbour Energy deepens UK North Sea footprint with $170m Waldorf deal
- Harbour Energy buys LLOG Exploration for $3.2B, strengthening US Gulf deepwater presence
- Asahi falls on buying majority stake in Diageo’s East African Breweries
- UK Pension Funds Eye Stake in Brookfield’s Center Parcs: Sky
- London Estate Agent Dexters Owner Exploring Potential Sale: Sky
- Janus Henderson agrees $7.4bn takeover by Nelson Peltz’s Trian
- MHA takes on Middle East with UAE acquisition
- Zilch buys Lithuanian lender to secure European banking licence
- Hedge fund Egerton Capital hands boss £42m after 25% revenue jump
- Stirling Square to sell Isoclima Group to consortium
- Stonepeak signs $10.1bn deal to buy majority controlling interest in Castrol
- KKR, Oak Hill to invest $2bn in Global Technical Realty
- Oakley to take majority stake in UK’s Glas
- Foreign buyers snap up cheap UK companies as dealmaking hits new high
- UK’s Auction Technology rejects buyout bids from top investor FitzWalter
- Jacobs to acquire remaining stake in PA Consulting for $1.6bn
Industry news
- Global dealmaking hits $4.5tn in second-best year on record
- Goldman Sachs takes UK dealmaking crown from JPMorgan
Salaries and bonuses
- Centerview Partners bumps UK banker pay to £500k per head after fee increase
- Best-paid Pinsent Masons partner sees pay cut to £1.27m
- Robey Warshaw cuts pay for top dealmakers by 50% ahead of Evercore takeover
- Best-paid Macfarlanes partner takes home record £5m
- 20 of London’s top hedge funds – and what they pay
- Quant hedge fund D.E. Shaw pays over $1m per head in one of its entities
- Blackstone paid its London partners nearly $5m, and its regulars nearly $450k
- London hedge fund has very average year, raises pay to $314k anyway
Job moves
- Clear Street UK head departs a year after its London launch
- HSBC hires ex-Citi exec Ida Liu to lead private banking
- JPMorgan hires former Citigroup banker Hargunani to lead ECM syndicate in Europe
- Eisler Capital money manager Yves Masselin joins Verition
- Cantor Fitzgerald appoints Shortland to lead European business
- Goldman Sachs hires senior UBS banker Berry for business services team
- Point72 hires ex-Eisler Capital money manager Bitel
Market trends
Another bumper year for UK retail M&A
UK retail sector M&A climbed 8.1% to 40 deals in the last year, the highest since pre-COVID, driven by demand for fast-growing categories and strategic overseas acquisitions, according to Lubbock Fine.
Pet products saw three takeovers compared to none previously, including healthy dog food producers Bulmer Pet Foods and The Dogs Butcher, reflecting expanded pandemic pet ownership and demand for premium pet foods.
Clothing led with 10 deals, up from six, fueled by childrenswear demand and international buyers pursuing luxury and fashion assets, with notable transactions including Hancock & Gore acquiring Schoolblazer and Belstaff being sold to Castore’s parent J Carter.
Corporate buyers have been particularly active in strategic deals targeting sectors where consumers are reluctant to cut spending during economic weakness, while distressed retail M&A remained active with Poundland sold to Gordon Brothers for £1 and WHSmith’s high street stores requiring renegotiation with Modella Capital due to deteriorating trading.
PE piles in to UK & Ireland
PitchBook’s Annual PE First Look reports that UK & Ireland captured €182.9bn in private equity deal value during 2025, representing the largest share among European regions and nearly matching 2022 levels of €183.5bn.
The region’s deal value has rebounded strongly from the 2023 low of €127.8bn, marking a 43% recovery.
Slow economy will limit mortgage relief
Government borrowing costs in the UK are expected to decline only slowly over the next few years, limiting mortgage pricing relief despite anticipated BoE rate cuts, according to Oxford Economics.
While 10-year gilt yields should edge down through 2026 as markets adjust short-term rate expectations, higher risk premia driven by heavy gilt supply, ongoing quantitative tightening, and reduced global demand for government bonds will restrict how far yields can fall.
Fiscal policy is projected to tighten steadily, with Budget measures reducing the UK’s structural deficit by 0.7% of potential GDP in 2025-26 and 0.8% in both subsequent years, taking place against subdued economic growth.
IPOs
