In a sharp rebound in global mergers and acquisitions (M&A) activity, more than $10 billion worth of bids for UK-based companies were announced on Monday, June 9, 2025, making it the busiest day of the year so far, as per Dealogic data. The sharp uptick reflects the growing appeal of low valuations and economic stability of the United Kingdom in an otherwise volatile global market.

This M&A surge comes as dealmakers across the globe eye British firms for their relative predictability, depressed stock prices, and a more favourable regulatory environment when compared to other major economies.

Big Names Make Big Moves

The renewed momentum saw major global players such as U.S. chipmaker Qualcomm, private equity firm Advent, and France's cosmetics giant L’Oréal all launch takeover bids for British companies on the same day.

One of the standout deals included Maryland-based IonQ’s $1.08 billion acquisition of British quantum computing firm Oxford Ionics. IonQ’s CEO Niccolo de Masi said the deal not only capitalised on the UK’s talent base but also aligned with growing geopolitical trends favouring domestic technology ecosystems.

"People want things on-premise and they want things to be local," de Masi told Reuters, referring to rising government demand for sovereign quantum networks.

A Wave of UK Deals in 2025

So far in 2025, 30 bids for UK companies valued above £100 million ($135 million) have been recorded, already surpassing the pace of 2024, when 45 such deals were announced throughout the year. According to Peel Hunt, these figures show growing buyer confidence and the compelling value British companies now offer.

While the overall deal value so far this year — £24 billion — is lower than the £36 billion logged during the same period last year, analysts point out that 2024 was skewed by a handful of mega deals, such as International Paper’s $7.1 billion offer for D.S Smith.

Why UK Is in Demand

The appeal lies in a combination of low valuations and macroeconomic predictability. Over the past few years, persistent outflows from UK equities have depressed share prices. This has made British companies significantly cheaper than their peers listed on European and U.S. stock exchanges.

The valuation gap between the UK’s FTSE 100 index and the U.S. S&P 500 reached a peak of around 49.5% in January 2025, and currently stands at about 41%. This stark difference has piqued the interest of global investors and private equity firms.

Amanda Yeaman, co-manager of abrdn’s UK Smaller Companies Fund, noted:
"Management teams have been happier to accept bids because it helps crystallise valuations in a tough equity market environment."

Stability and Predictability Add to the Appeal

Another key factor driving M&A activity is the relative stability of the UK economy and political landscape. Analysts believe this sense of predictability is lacking in several other developed markets, including the U.S., especially in the run-up to its 2026 elections.

Charles Hall, Head of Research at Peel Hunt, said:
"Buying a UK company at the moment is likely to be less risky than, say, buying a U.S. business."

Post-Brexit, Britain has actively pursued new trade agreements to showcase its openness to global commerce. With no general election imminent, the UK currently enjoys a period of political calm — something markets respond to favourably.

"Our markets really like stability, and for the next four years, that’s something the UK offers — which is rare elsewhere," Yeaman added.

Currency and Timing Matter Too

Interestingly, the strong pound does not appear to be a deterrent to foreign acquisitions. Instead, some investors view the current environment as a time-sensitive opportunity. If the dollar weakens or the pound strengthens further, future UK deals may become more expensive.

Magesh Kumar, equity strategist at Barclays, explained:
"U.S. investors want to grab what they can while currency tailwinds still exist."

In this context, firms are motivated to lock in strategic deals before exchange rates turn less favourable.

What Lies Ahead?

The week has already seen some of 2025’s largest bids, including:

• Advent’s £3.7 billion offer for Spectris, a scientific instruments maker

• Qualcomm’s £1.8 billion bid for Alphawave, a UK semiconductor firm

According to Clifford Chance partner Erik O’Connor, the environment is ripe for more such deals. The combination of stable interest rate expectations, improved corporate balance sheets, and sector-specific momentum in fields like technology and real estate, points to a robust dealmaking pipeline.

"There’s a sense that key fundamentals are in the right place to transact," O’Connor noted.

Dealogic data confirms that technology and real estate have so far been the most active sectors for M&A in 2025, driven by innovation, infrastructure demand, and global appetite for scalable platforms.

Conclusion

The UK’s combination of undervaluation, market stability, and political calm has made it a magnet for global dealmakers in 2025. With private equity firms, global corporates, and institutional investors looking to capitalise on the current environment, British firms are likely to remain hot acquisition targets in the months to come.

The Upcoming IPOs in this week and coming weeks are Mayasheel Ventures, Eppeltone Engineers, Aten Papers, Patil Automation, Oswal Pumps, Samay Projects Services.

The Current active IPO are Jainik Power Cables, Monolithisch India.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.