Half of UK takeovers from abroad

Foreign bidders launched 53 per cent of takeovers of UK listed companies in the first quarter of 2010.

Foreign bidders launched 53 per cent of takeovers of UK listed companies in the first quarter of 2010, according to research from London law firm Wedlake Bell.

This is almost double the 27 per cent figure for the same period in 2008.

Tim Bird, partner at Wedlake Bell comments: ‘There is a very definite pattern emerging here, which is that more and more foreign companies see the UK as a good place to invest. And the quickest way is to acquire companies.

‘The return to growth of the UK economy is boosting the confidence of overseas investors who clearly view the long term prospects of the UK economy to be very good.’

Bird also commented that a well-established and competitive legal system for takeovers with a transparent and robust regulatory system, as well as a weak pound, makes UK listed companies attractive to overseas investors.

Although the US it still the largest overseas bidder for UK companies at 30 per cent over the last two years, emerging market bidders like China and India are catching up fast. The report showed that since March 2009, 11 per cent of overseas bids were from China, while bids from India for UK listed companies stood at five per cent over the last two years.

Nick Britton

Lexus Ernser

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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