British mergers and acquisitions reach highest level in 26 years as overseas buyers drive takeover surge

Foreign Investment Fuels Record UK Dealmaking Surge

In the opening months of this year, the United Kingdom experienced its busiest period for mergers and acquisitions in over two decades, as international investors rushed to acquire British businesses.

During January and February, deals totaling nearly $90 billion (£68 billion) were finalized, highlighted by several major foreign takeovers—including a multibillion-dollar agreement for insurer Beazley.

This $89.9 billion in M&A activity marks the highest value for the first two months of the year since 2000, when deals reached $131 billion.

Although the total value soared, the number of transactions actually declined compared to last year, dropping from 471 to 304, according to data from the London Stock Exchange.

Major International Acquisitions

Recent months have seen a wave of prominent foreign takeovers. In February, 222-year-old asset manager Schroders revealed plans to sell to US-based Nuveen for £9.9 billion, ending its 67-year presence on the London stock market.

French energy giant Engie also struck a deal to purchase UK Power Networks for £10.5 billion last week. The company, which manages electricity infrastructure across London and the South East, was acquired from Hong Kong’s CK Group, led by Sir Li Ka-shing, after 15 years of ownership.

Earlier in January, Zurich Insurance announced its intention to acquire Beazley, a leading Lloyd’s of London insurer, in a deal valuing the company at £8 billion. The acquisition was confirmed on Tuesday.

Concerns Over Foreign Takeovers

The recent surge in acquisitions has reignited worries that overseas investors are capitalizing on lower valuations in London to buy British firms at attractive prices.

Last year, foreign buyers agreed to $142 billion in takeovers of UK companies—a 74% increase compared to 2024, according to the London Stock Exchange. American firms accounted for just over half of these deals, making the US the dominant player in British acquisitions.

Deal Values Expected to Climb Further

Separate figures from the Office for National Statistics (ONS) show that foreign companies spent £27.4 billion on UK businesses in the final quarter of 2025—the highest quarterly total since mid-2021.

Patrick Sarch, who leads UK public M&A at White & Case, anticipates that deal activity will continue to grow, with more companies choosing to go private. He expects the value of deals to “increase significantly.”

Mr. Sarch explained that this trend will be driven by large-scale, transformative mergers and more public-to-private transactions, especially in sectors like financial services, healthcare, technology, and defense.

Global M&A Activity on the Rise

The UK’s dealmaking boom is part of a broader global trend, as uncertainty from previous US tariffs has faded and interest rates have declined. According to the London Stock Exchange, worldwide M&A deals announced in the first two months of 2026 totaled $749.1 billion—a 65% jump from the previous year and the highest year-to-date figure since records began in the 1970s.