UK M&A hits $192 billion as foreign bids drive record pace

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UK M&A hits $192bn as foreign bids drive record

Highlights

UK-targeted M&A has reached $192 billion year-to-date in 2026, exceeding all but one previous annual pace since 1980, according to LSEG data.
Foreign takeovers of UK targets total $165 billion so far in 2026, with U.S. bidders responsible for over half of these acquisitions, setting a new year-to-date record.
UK M&A represents 10% of global announced deals year-to-date, the highest share since 2015, as discounted FTSE 100 valuations and predictable market rules attract bidders.

Foreign takeovers lift UK deal volumes

According to Reuters, LSEG data show UK-targeted M&A has more than tripled from the same point last year, with announced deals reaching $192 billion so far in 2026. That total has been exceeded only once at this stage of a year since records began in 1980, and it is already close to the $194 billion recorded for the whole of 2025.

Some of the biggest approaches this year include bids involving Intertek, Schroders and Unilever's food unit, as well as U.S.-listed Ingredion's offer for Tate & Lyle made last Wednesday. Intertek said last week its board was minded to recommend a 9.4 billion pound takeover by private equity group EQT, a transaction that would mark Britain's largest private-equity buyout since the 2007 acquisition of Alliance Boots, according to the data.

Foreign takeovers of UK targets total $165 billion so far this year, an all-time year-to-date record. U.S. bidders account for more than half of those foreign acquisitions, highlighting the scale of inbound interest from overseas buyers.

Valuation gap and market rules attract buyers

One driver of the pickup is valuation. The FTSE 100 trades at a discount to European and U.S. equity markets, and UK stocks have become cheaper relative to U.S. shares in recent months, even if they are not as undervalued as they were in 2024.

Clifford Chance partner Dominic Ross says clients continue to pursue large and complex transactions that make a material difference to their businesses. He also says bidders are targeting Britain because the country offers a predictable takeover framework and remains a tried and tested market.

By value, UK-targeted M&A represents 10% of global announced deals so far this year, the highest year-to-date share since 2015. Even so, dealmaking remains below earlier peaks as a share of the economy, with M&A equal to 26% of UK GDP in 2000, 5% in 2025 and 14% in the first quarter of 2026, based on LSEG and Office for National Statistics data.

Our earlier coverage of the UK’s sovereign credit outlook highlighted that the country’s AA rating was affirmed with a stable trend, supported by a large and diversified economy and strong institutions. The piece also noted the main constraints: slower growth projections, high public debt and deficit pressures, and renewed energy-driven inflation risks that keep monetary policy cautious and financial conditions tight.

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