The UK is on pace for its busiest year of takeovers since 2021, with £74 billion in bids tabled for British companies in the first six months of 2025, according to new research from broker Peel Hunt. The surge is being fuelled by both domestic consolidation and aggressive moves by overseas private equity, particularly from the United States.
Peel Hunt’s analysis highlights that takeover activity is being driven by a mix of public-to-private deals and strategic acquisitions, as undervalued UK assets continue to attract suitors. Notably, contested takeovers are at their highest levels in five years, signalling a more competitive and heated M&A environment.
US firms have played a major role in the resurgence, accounting for over a quarter of bidders so far this year. Private equity firms from the US alone were involved in 14 per cent of all bid situations. Meanwhile, UK-based acquirers have ramped up significantly, representing 63 per cent of buyers—well above the 46 per cent average over the past five years.
Michael Nicholson, head of advisory and M&A at Peel Hunt, said the shift reflects a growing confidence among UK corporates and investors: “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 for boards and shareholders.”
The data suggests that a weakened pound and relatively depressed UK equity valuations continue to make British firms attractive targets. However, the recent increase in activity has raised concerns among regulators.
The Financial Conduct Authority (FCA) is investigating a sharp rise in deal leaks after new figures revealed that nearly 40 per cent of takeovers were reported in the media before any official announcement. According to a freedom of information request by the Financial Times, 42 of the 110 M&A announcements made between April 2024 and May 2025 involving London-listed companies were leaked ahead of formal disclosure.
The FCA has opened 33 investigations into potential market abuse since 2020 and expressed particular concern over “strategic leaks” being used as a tactic during ongoing deal negotiations—such as attempts to deter rival bidders or influence market reaction.
In a market notice issued in March, the FCA said: “We are concerned…by strategic leaks where inside information is deliberately given to the press by individuals at an issuer or its advisers.”
The watchdog is now urging companies and their advisers to tighten controls and take greater care in handling sensitive deal information, as confidence in market integrity becomes increasingly critical in a busy M&A landscape.
With further consolidation anticipated across sectors such as tech, healthcare and financial services, and valuations still seen as attractive, the UK’s deal pipeline shows little sign of slowing as 2025 enters its second half.
