Recent analysis by White & Case reveals that merger and acquisition activity in the U.K. has surged, with transaction values reaching over £75 billion ($99 billion) by the end of the third quarter, nearly doubling the total for 2025. This increase is largely driven by foreign buyers, who accounted for 72% of transaction volume and 94% of total deal value.
The report indicates a notable rise in hostile takeover attempts, which have quadrupled this year compared to previous years, with four hostile offers recorded, two of which occurred in the third quarter alone.
The valuation gap between U.K. companies and their global counterparts is attracting international capital, particularly in large-cap deals, with significant transactions such as McCormick's $45 billion acquisition of Unilever's food business and Nuveen's £9.9 billion take-private purchase of Schroders.
Analysts suggest that the ongoing discounts in U.K. valuations will continue to entice foreign investors, as they seek to acquire strong, globally-exposed businesses at compelling prices. A Deutsche Bank survey indicates that 87% of respondents expect M&A activity in the U.K. to rise over the next year, reflecting growing optimism among buyers regarding U.K. companies