By Anousha Sakoui
LONDON, May 18 (Reuters) - A rush of foreign bids for UK companies has put Britain on track to outstrip all previous records for dealmaking in 2026, with M&A in the country more than tripling from this time last year to $192 billion so far.
Bids for Britain's Intertek, Schroders and Unilever's food unit are among the top deals this year, as well as U.S.-listed Ingredion's offer for Tate & Lyle last Wednesday.
Intertek's board said last week it was minded to recommend a 9.4 billion
pound ($12.7 billion) takeover by private equity group EQT, which would be Britain's largest private-equity takeover since the 2007 acquisition of pharmacy chain Alliance Boots, according to LSEG data.
One of the drivers of UK dealmaking has been cheap shares: the FTSE 100 has been trading at a discount to European and U.S. stock markets. British stocks have become cheaper compared to U.S. stocks in the last couple of months, even if they are not as good value as they were in 2024.
"We are continuing to see opportunistic, strategic consolidation, with clients pursuing large and complex deals that move the needle and which will make a material difference to their business," said Dominic Ross, partner at Clifford Chance.
A PREDICTABLE MARKET
Another reason bidders are targeting the UK is the country's predictable landscape for takeovers.
"The UK is a tried and tested market," Ross said. The $192 billion of deals at this point in the year has only been exceeded once before since LSEG records began in 1980. It is more than triple the amount recorded this time last year and close to the $194 billion total recorded for the whole of 2025.
By value, UK-targeted M&A accounts for 10% of total global M&A announcements so far this year, the highest year-to-date share since 2015.
This year’s UK M&A figure is driven by foreign takeovers, which total $165 billion, an all-time year-to-date record, LSEG said.
U.S. bidders accounted for more than half of the foreign takeovers of UK targets in the year to date, according to the data. "Much of the activity we are seeing is inbound into the UK from the U.S., perhaps due to the continued perception that UK-listed stocks are relatively cheaper," Ross added.
Foreign takeovers of UK targets accounted for 86% of all UK M&A by value so far this year, compared to 74% last year at this time and an all-time high.
To be sure, as a percentage of UK GDP, M&A is still a smaller proportion than at previous dealmaking peaks.
Back in 2000, M&A accounted for 26% of UK GDP according to data by LSEG and the Office for National Statistics. In 2025, it accounted for 5% and in the first quarter of 2026 that jumped to 14%.
($1 = 0.7411 pounds)
(Reporting by Anousha Sakoui; Additional reporting by Samuel Indyk; Editing by Susan Fenton)
