Key points:
- Deal values soar: £39.3 billion aggregate deal value (YTD 2026: £75 billion; FY 2025: £38.2 billion)
- Overseas bidders dominate - involved in deals accounting for 72% of deal volume and 94% of aggregate deal value YTD 2026. Overseas bidders involved in all but one of the £1bn+ deals announced this year
- Active market: 21 firm offers (YTD 2026: 47; FY 2025: 56)
- Eight £1 billion+ transactions (YTD 2026: 13; FY 2025: 12)
- Listed bidders and PE both active: ten PE bidders (£19.3 billion); ten listed bidders (£19.4 billion); one unlisted strategic (£583 million)
- More hostile offers and bear hugs: two hostile offers and four bear hug announcements (YTD 2026: four hostile offers; 14 bear hugs)
- US bidders active: Involved in ten firm offers; £32.2 billion aggregate deal value (YTD 2026: 17 firm offers; £47.3 billion)
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Hot sectors: 14 firm offers in Q3 2026 in industrials, oil & gas, real estate and technology sectors. High deal values in industrials (£14.5 billion) and real estate (£15 billion). Oil & gas (£776 million) and technology (£1.1 billion) activity concentrated at the lower end of the market
- Sectors: The top three sectors by deal value are:
- Industrials: nine firm offers; £25.5 billion
- Financial services: eight firm offers; £19.8 billion
- Real estate: five firm offers; £15.2 billion
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Global revenues: c. 60% of bids by overseas bidders were for a company that derived most of its revenue from overseas
- Overseas bidder profile: In the US, it has mainly been PE bidders, but in Continental Europe it has mainly been strategics
- US v Continental Europe: US: 17 firm offers; £47.3 billion v. Continental Europe: 11 firm offers; £22.6 billion
Commenting, Patrick Sarch, Head of UK Public M&A at global law firm White & Case LLP, said:
“Deal values are soaring as overseas bidders drive activity at the top of the market. With scale increasingly being rewarded with a valuation premium across UK, European and US markets, overseas acquirers are pursuing larger, platform-building UK transactions rather than smaller bolt-on deals.
“Foreign bidders are also being driven by the prolonged valuation gap between UK-listed companies and their international peers. As long as this persists, they will continue to target the UK’s world-class listed companies with global revenue profiles, strong cash generation and established management teams.
“Despite heightened geopolitical tensions, bidders are pressing ahead as they view waiting for calmer conditions as a risk. While concerns remain over what continued foreign takeovers mean for the future of the UK public markets, without more new companies being listed and scaling up, we welcome this inbound capital flow into our open economy from buyers who see opportunities to unlock greater value under private ownership. An absence of international demand would be far worse and there are encouraging signs of optimism for UK listed companies.”
Sonica Tolani, Partner in the global M&A and Corporate practice at global law firm White & Case LLP, added:
“Listed bidders remain active alongside private equity, showing that strategic buyers are prepared to compete for high-quality UK assets where there is a strong rationale for a transaction.
“We are also seeing more hostile offers and the growing use of bear hugs, with overseas bidders increasingly willing to make their proposed terms public and invite shareholders to put pressure on boards to engage. This reflects deeper familiarity with the UK regulatory environment, and a willingness to use public pressure as a legitimate tool rather than a last resort.
“Structural changes in the UK market are also making these tactics more effective. The UK market has lost domestic, long-term investors who would once have rallied behind target boards. That changing investor base is more vocal and, with many UK-listed companies continuing to trade at a sustained discount to international peers, shareholders may prefer a premium in hand over a board’s multi-year case for a higher standalone valuation.”
