Foreign buyers acquire £30.4bn of UK firms in first half of 2025, biggest half-year since 2021
Relatively low valuations and shifting investor focus underpin a surge in overseas takeovers despite a fragile domestic economy
Foreign acquirers purchased £30.4 billion of UK companies in the first half of 2025, the largest six-month total since early 2021, an analysis of Office for National Statistics figures by The Mail on Sunday found.
The inflow of overseas bids far outstripped outward activity: British firms made £11.9 billion of acquisitions abroad in the same period. Deal volume was concentrated in the first quarter, when foreign takeovers totalled £21.1 billion, the highest quarterly amount since the third quarter of 2022; activity slowed to £9.3 billion in the second quarter but left the six-month tally above the full-year total of £26.3 billion recorded in 2024.
Market lawyers and dealmakers pointed to a combination of relatively low UK equity valuations, a weaker pound and shifting investor appetites as drivers of the takeover surge. Patrick Sarch, head of UK public mergers and acquisitions at law firm White & Case, said 2025 was "shaping up to be one of the busiest years for UK takeovers in many years," adding that the activity was driven “less by confidence in the UK economy, which remains fragile, than by the enduring attractions of the UK market, including relative valuations.”
Sarch said a mix of private equity groups and strategic corporate bidders, particularly from the United States, were increasingly active and that improved borrowing conditions and perceived market stability supported offers for UK targets. He cautioned that while 2025 was unlikely to beat the 2021 annual total of about £76.7 billion or the 2016 record of roughly £190 billion, 2026 could set new highs if sterling remained weak and equity markets held up.
The takeover wave has included several high-profile sales. In January, auto engineer Dowlais agreed a £1.2 billion deal with American Axle & Manufacturing. Takeaway delivery app Deliveroo was bought by US rival DoorDash in April for about £2.9 billion. Chip designer Alphawave was acquired by Qualcomm in June for approximately £1.8 billion, and scientific instrument maker Spectris was the subject of a £4.2 billion buyout by New York private equity firm Kohlberg Kravis Roberts.
Analysts and commentators have also linked the flow of inbound deals to a perceived shift by some global investors away from the United States. The Mail on Sunday reported that concerns about political and policy uncertainty in the US played a role in redirecting capital to European targets, including the UK. Market participants cautioned that motivations for individual transactions varied and that strategic fit, technology access and asset playbooks remained dominant drivers for specific bidders.
The surge in foreign takeovers comes amid signs of weakness in the UK economy. Official data and business surveys released through 2025 have shown slowing growth, rising unemployment and elevated inflation, raising questions about the outlook for corporate performance and for London’s appeal as a listing venue. Some executives and advisers have expressed concern that the London stock market is losing ground as a destination for initial public offerings, a trend that could further increase the attractiveness of sale routes for UK firms.
While inbound deal value in the first half of 2025 exceeded the total for 2024, market participants noted that dealmaking is cyclical and sensitive to financing conditions, currency moves and geopolitical developments. Private equity firms remain well capitalised by historical standards but are selective, and strategic buyers are prioritising targets that offer technology, supply-chain resilience or market share gains.
Regulators and policymakers have been monitoring the pattern of foreign investment. UK government reviews and national security assessments can affect the outcome of high-profile bids, particularly in sectors deemed sensitive. For now, corporate advisers said the pipeline of possible offers and approaches suggested takeover activity would remain robust for the remainder of 2025, with the prospect that inbound acquisition totals could rise further if market and currency conditions continue to favour overseas buyers.