The 'bear-hug' American investors smothering London's biggest and best companies
This is turning into a year like no other in the City of London . The financial district is consumed with a deal-making frenzy. Bankers, lawyers and corporate PR advisers are working flat out — and, of course, raking in hefty fees — as a tidal wave of foreign takeovers has engulfed the UK market. There has been no end to the whirlwind activity across all manner of sectors. One day it is budget…
The financial district of London is currently in the midst of a deal-making frenzy, with foreign takeovers engulfing the UK market in every sector. Companies such as easyJet, Tate & Lyle, Segro, and Schroders have all been the targets of American investment firms, including Apollo Global Management, Ingredion, Prologis, and Nuveen.
The trend of American investors snatching up British companies has been nearly one-sided, with a staggering 86% of all mergers announced in the UK this year being foreign takeovers. This year alone, inbound merger and acquisition activity into the UK has surpassed a staggering $231 billion, making it three times the amount for the entire year of 2025.
Many of these bids are known as "bear-hug" offers, where the buyer quotes a price that is significantly above the last closing price of the shares, typically around 20% higher. Despite the shareholders' hesitance, these "sweetheart" offers are proving difficult to resist, as the chances of increasing the share price by 20% without an external influence are slim.
This surge of foreign investors has been different from past incidents, with shareholders seemingly willing to surrender to the offers, even if they hold out for a higher premium. The board of directors appears to be on the back foot, forced to open talks with the bidders to secure the deal. The UK's institutional shareholder base, mainly composed of pension funds, may be contributing to the increased attractiveness of UK companies to foreign investors.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
