paid-only post May 29, 2026 Insights

Why UK M&A is Booming

Plus How it impacts Law Firms and their Clients.

UK politics is full of drama at the moment. That means businesses are spooked, and investment confidence is low.

So you would expect M&A activity to be in the gutter, right?

Wrong. The opposite is happening...

UK dealmaking is up more than 250% this year and on track for its best showing in over a decade, with international buyers queuing up to snap up some of the UK's top companies.

💡 Today we discuss what is actually going on, why it matters, and what it means for the Law Firms and their clients.

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What's going on?

M&A targeting UK companies is running at around $150 billion this year, more than 250% up on the same period in 2025. It is the highest level at this point in the year since 2015.

And there have been some huge deals:

Unilever combined its food business, including Hellmann's mayonnaise and Knorr stock cubes, to US spice maker McCormick for $44.8 billion.
Asset manager Schroders agreed a near £10 billion sale to US investment firm Nuveen.
Engie is buying the UK's largest power-distribution network for £10.5 billion.

Why is this happening?

Three things are driving the boom.

💸 First, UK stocks are genuinely cheap. The FTSE 100 looks cheap compared with Europe and the US. To an American buyer sitting on a strong dollar and an expensive home market, a quality UK business looks like a bargain. The discount has been there for years, but the gap is now wide enough that strategic buyers and private equity firms are both prepared to act on it.

🌍 Second, UK-listed does not mean UK-exposed. Most FTSE 100 companies are global businesses that happen to have a London listing. A buyer acquiring Unilever's food arm is not really buying a bet on Britain; they are buying Hellmann's, Knorr and a portfolio of brands sold in over a hundred countries. The same logic applies to companies like Schroders, Intertek and Tate & Lyle.

🤗 Third, Britain is unusually open. Compared to France, Germany or Italy, the UK has historically had a lighter touch on foreign takeovers and fewer protectionist reflexes. National Security and Investment Act reviews exist, but they are not a big blocker. Combined with cheap valuations and global revenue, this makes the UK the path of least resistance for cross-border consolidation.