UK M&A Hits 28 Deals as Overseas Buyers Chase Cash-Generative Assets
Updated
Updated · CNBC · Jul 2
UK M&A Hits 28 Deals as Overseas Buyers Chase Cash-Generative Assets
1 articles · Updated · CNBC · Jul 2
Summary
28 transactions have been announced in the U.K. so far this year, with Citi UK CEO Tiina Lee saying M&A is "on fire" and now driving the country's capital-markets activity.
Large-cap simplification is a main catalyst, as companies streamline portfolios and refocus on core operations; Lee cited McCormick and Unilever's food deal and Diageo's sale of its Indian cricket team.
Overseas buyers are targeting British businesses with strong cash flow and international reach, helped by a valuation gap between the U.K. and U.S. that makes established U.K. assets look attractive.
UK companies are still buying abroad as well, with Lee pointing to Rosebank's acquisition of MW Components, while IPO activity remains comparatively subdued.