Michael Nicholson comments:
“The volume of activity has been plain to see – at the current run rate, 2025 will be the most intense period of UK takeovers in recent years, averaging two new bid situations per week. Notwithstanding the modest average transaction size, £74 billion of firm offers in H1 would annualise to the highest aggregate value of listed takeovers since 2021.”
UK-listed consolidators are giving US private equity a run for their money
- UK accounted for 63% of bidders in 2025 YTD, compared to 46% in the last five years
- US bidders continue to show high levels of interest in the UK: US private equity firms have been offerors on 14% of all bid situations in H1 2025, rising to 27% when US strategics are added into the mix
Michael Nicholson comments:
“In H1 2025, US PE firms have met their match in the form of UK-listed consolidators. The benefits of greater scale and more liquidity, while preserving key assets and high-quality businesses in the UK markets, have become increasingly persuasive factors in the considerations of UK plc boards and investors when weighing up offers with share consideration against all-cash proposals.”
UK boardroom sentiment is shifting
Michael Nicholson concludes:
“The battle between KKR and Primary Health Properties for Assura appears to carry a symbolic significance for the UK market as a whole, not just the highly active REIT sector which has also seen the board of Warehouse REIT switch its recommendation from a cash bid from Blackstone to a cash and share offer from Tritax Big Box REIT. Likewise, Rosebank Industries’ acquisition of ECI in the US, supported by a £1bn+ equity raise, passes a further landmark in the return of the UK consolidator. In some UK boardrooms, there are evidently signs of shifting sentiment from a sense of vulnerability to a more front-footed, strategic outlook.”
Spotlight on Real Estate M&A
- The real estate sector accounts for 20% of all target companies in 2025 YTD, compared to a five-year average of just 11%
Michael Nicholson comments:
“The real estate sector has emerged as a focal point in UK public M&A activity in recent months, underpinned by the sustained discounts to NAV at which many of the mid-sized, externally managed REITs trade, alongside ostensibly more robust pricing in the direct real estate market.”
