UK-targeted mergers and acquisitions have reached unprecedented levels in 2026, with deals totaling over $231 billion so far. This figure represents a 210% increase compared to the same period last year and has already surpassed the $194 billion recorded for the entire year of 2025. This surge is largely driven by foreign takeovers, which account for more than $197 billion, establishing a new year-to-date record since data collection began in 1980. Foreign bids constitute 86% of all UK M&A by value this year, an all-time high compared to 75% last year.
Key deals contributing to this record year include the agreement by Intertek's board to a £9.4 billion ($12.7 billion) takeover by private equity group EQT last month. This marks Britain's largest private-equity takeover since the 2007 acquisition of Alliance Boots. Other significant transactions include insurer Beazley's £8.1 billion acquisition by Zurich, Nuveen's £9.9 billion sweep of Schroders, and engineering firm Rotork's £4.1 billion purchase by Swiss rival ABB. US bidders have made up more than half of the foreign takeovers of UK targets this year.
The increase in M&A activity has also led to a significant jump in M&A's contribution to the UK's GDP. In the first quarter of 2026, M&A accounted for 14% of UK GDP, a notable rise from 5% in 2025. This, however, remains below the 26% peak seen in 2000. Analysts attribute this trend to UK companies being perceived as undervalued, making them attractive targets for foreign buyers who are seeking to capitalize on a valuation gap. Despite the record-breaking deal values, the London stock market is shrinking due to these takeovers and a lack of new IPOs, raising concerns about the long-term impact on the UK economy, including tax revenues and pension investments.
The surge in takeovers has been fueled by factors such as cheap UK shares and the perception that the UK is a "tried and tested market." Experts suggest that this M&A trend will likely continue unless significant changes occur in the UK market. The value of offers for UK companies in the first half of 2026 alone reached £175 billion, with inbound offers from overseas suitors making up £150 billion of this total, equivalent to 85% and the highest ever recorded. This has prompted concerns that British companies are being acquired "on the cheap" by foreign entities.
