Legal & General draws private capital takeover interest as pressure builds on core business

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Legal & General takeover interest

Highlights

Advisers and potential bidders are evaluating full takeover, asset sales, and reinsurance options for Legal & General due to persistent share price stagnation and sector competition.
Scottish Mortgage Investment Trust values SpaceX at $1.25tn, below the $1.75tn pre-IPO target, following direct discussions with SpaceX management.
Schroders plans to exit its China mutual funds business while Mitsubishi UFJ Financial Group is negotiating the sale of about $2bn in loans, reflecting ongoing global financial sector reshaping.

Bid interest builds around L&G strategy

As first reported by the Financial Times, advisers and potential bidders are assessing options for Legal & General, including a possible full takeover as well as asset sales and reinsurance transactions. People familiar with the discussions say insurers and alternative asset managers have been reviewing the business as its flat share price, tighter credit spreads and new competition weigh on profitability.

Private capital executives say several strategic paths are available if the company chooses to pursue them, including selling blocks of insurance assets, transferring assets to reinsurers or bringing in a private capital partner for part of its pension risk transfer business. A full acquisition has also been considered, although such a deal would be complex and politically sensitive because of L&G’s size and its substantial gilt holdings.

Chief executive António Simões rejects the idea that a sale or break-up is under way. He says there are no discussions taking place and that he remains fully focused on executing the group’s strategy.

Sector pressure extends across private markets and technology investing

Elsewhere in asset management, Scottish Mortgage Investment Trust has valued SpaceX at $1.25tn, below the $1.75tn valuation reportedly being sought ahead of an expected initial public offering. Baillie Gifford, which manages the trust, says the assessment is based on verifiable transactions after meetings with SpaceX management, and adds that a more precise valuation may be possible once a full prospectus with audited financial results is published.

In Japan, demand for artificial intelligence exposure is driving a record distortion between the Nikkei 225 and the broader Topix index. The NT ratio has risen to its highest level since tracking began in 1970, reflecting concentrated buying in semiconductor and technology-linked stocks as global investors look for AI exposure outside the U.S.

The wider sector backdrop also includes Schroders planning to exit its wholly owned China mutual funds business, Hargreaves Lansdown cutting jobs under its private equity owners' modernization plan, and Mitsubishi UFJ Financial Group discussing the sale of about $2bn in loans to listed private credit funds. Together, the developments point to continued portfolio reshaping, cost pressure and selective risk reduction across global asset management and financial services.

Our earlier article on the surge in UK M&A activity noted that announced dealmaking has climbed to $192bn year-to-date in 2026, putting the market on pace to challenge past records. We highlighted that most of the volume is being driven by foreign acquirers, with the combination of discounted UK equity valuations and a predictable takeover framework drawing bidders to large UK-listed targets.

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