Key facts
- London Stock Exchange faces significant M&A activity, with 79 listed firms involved so far this year.
- Bodycote, Gamma Communications, and Capricorn Energy have accepted takeover bids, valued at over £3bn combined.
- The total value of unsolicited bids for UK companies this year has reached £132bn.
- Advisers warn of complacency and urge government action to support the domestic stock market.
- Valuations of smaller UK listed companies remain low compared to international markets like the S&P 500.
The London Stock Exchange is facing a significant outflow of companies due to a record number of mergers and acquisitions, prompting calls for urgent government intervention. Three more firms, FTSE 250 constituents Bodycote and Gamma Communications, along with energy company Capricorn, have accepted bids from foreign buyers, extending a trend that has seen companies worth a combined £132bn delisted this year.
Bodycote, a metallurgy business, agreed to be acquired by US private equity firm Veritas Capital for £1.9bn, representing a 41.4% premium on its share price. Telecoms giant Gamma Communications recommended an £1.1bn offer from UK private equity shop Epiris. Capricorn Energy will end its 38-year listing after agreeing to a takeover by Norwegian petrochemicals giant DNO.
City figures are urging politicians to implement new policies to bolster Britain's public market and retain domestic capital. Experts note that valuations for smaller UK-listed companies remain low compared to international benchmarks like the S&P 500. There is a concern that without action, the London Stock Exchange risks losing more blue-chip firms, impacting its overall health and attractiveness for new listings.