International investors, particularly from the United States, are eagerly snapping up British companies, leading to a wave of takeovers that might leave some feeling uneasy about losing iconic British brands to foreign ownership.
However, overlooking this summer’s stock market trend in 2026 could prove costly. Investing often involves navigating mixed emotions.
So far this year, foreign bids have totaled an impressive $192 billion, a figure that triples the amount recorded at the same time in 2025. Recent developments suggest that Tate & Lyle, a longstanding FTSE 250 ingredients company established in 1921, might soon be acquired by the American firm Ingredion for £2.75 billion.
This news comes on the heels of another potential acquisition involving Intertek, a FTSE 100 company known for product certification. Swedish private equity firm EQT is reportedly considering a £9.4 billion takeover bid, causing Intertek’s shares to soar to 5480p—an 18% increase since January.
Similarly, Spire Healthcare has seen its shares surge by over 33% this year, as British activist investor Toscafund Asset Management eyes a possible £1 billion acquisition.
These transactions highlight a trend of foreign investors perceiving British companies as significantly undervalued. A case in point is Schroders, an asset management firm. In February, it had a market capitalization of £7.6 billion, yet U.S. investment company Nuveen expressed interest in purchasing Schroders for £9.9 billion, despite its origins dating back to 1804.
Gathering storm: American and other foreign predators are in a frenzy to buy British firms
There are various causes for the unloved nature of UK shares. The FTSE 100 has been held back by its lack of tech shares.
The tech-focused Nasdaq index in the US has jumped by 13 per cent since January, propelled by
the passion for artificial intelligence (AI) and semiconductor stocks. The broader S&P 500 has also risen by 8 per cent. Over the same period, the FTSE 100 is up by just 5 per cent, dragged down too by the nation’s economic and political woes.
Nevertheless, overseas investors appear able to see beyond these conditions, perceiving Britain as bargain-hunting territory.
If you are wondering what the excitement is about, here’s what you need to know.
ALLURE OF BRITISHNESS
Despite the uninspiring background, Alan Dobbie, of the Rathbone Income Fund, suggests the foreign takeover trend sends a strong signal that UK investors, willing to look beyond current turmoil, should reassess Britain’s potential. He said: ‘It’s often at times like this that longer term investors start to lean-in and take a closer look.’
Jean Roche, manager of the Schroder Mid-Cap fund, highlights the surge in share buybacks, in which companies buy their own shares to boost their share price.
She said: ‘The UK has become the buyback capital of the world, which is a clear signal that management teams believe their own shares are too cheap.
Broker AJ Bell’s calculations show that £34.6billion worth of buybacks had been announced by the end of April by Sainsbury’s and others. Investment director Russ Mould suspects yet more buybacks could be revealed by banks and oil companies in coming weeks.
Tasty: Pork and poultry processor Cranswick (its sausages, pictured above) has seen its shares climb by 11 per cent since January
IS IT WORTH BACKING THE UK?
British businesses are not only considered to be undervalued, they also present fewer problems to a predator than the firms of other countries. Anna Macdonald, of broker Hargreaves Lansdown, said: ‘Britain’s companies are English-speaking and internationally oriented. This makes integration straightforward for most overseas buyers.’
She continued: ‘Companies listed on the London market typically have broad, dispersed shareholder bases.
‘By contrast, many European companies have large anchor shareholders, in the shape of the families, foundations or even the state.
‘Such investors have longer-term horizons, and little inclination to sell. The UK’s openness has made it the path of least resistance for overseas capital.’
Juliet Schooling Latter, of FundCalibre, said that larger British companies should be well-positioned if inflation becomes more of a threat, making them even more attractive to would-be suitors – but also a decent proposition even if no offers arrive.
NEXT POTENTIAL TARGETS?
Speculation surrounds an array of companies. Canadian group Intact Financial Corporation is said to be eyeing up insurer Hiscox, whose shares have leapt by 28 per cent since January.
Rival Legal & General may be denying that it is anyone’s love object. But this does not still the rumours that Wall Street titans such as Apollo, BlackRock, Blackstone and Brookfield could be interested. But if you are contemplating taking a stake, it is not certain whether the regulators would readily permit a takeover of Legal & General since it is the custodian of £200billion of our pension savings.
This week Premier Inn owner Whitbread was instructed by Corvex Management, one of its US investors, to find a buyer. And speculation is mounting that US giant KKR is sizing up energy solutions specialist DCC.
Roche suspects there will be more approaches for smaller and medium-sized businesses. She cites the pork and poultry processor Cranswick, whose shares have climbed by 11 per cent since January.
THE FUND PICKS
UK stocks have fallen so far out of fashion that your portfolio may be mostly composed of US tech shares or global funds heavily weighted towards tech titans Meta, Microsoft and Nvidia. This suggests diversifying into Britain may be wise, even if the bid frenzy slows, which seems unlikely.
AJ Bell’s best-buy UK active funds are Fidelity Special and Liontrust UK Growth. Its tracker picks are two exchange traded funds: iShares Core FTSE 100; and Vanguard FTSE 250 (one of the true-Brit parts of my portfolio).
For those who want wider exposure, Macdonald cites Artemis UK Smaller Companies, whose managers seek out companies that ‘trade on attractive valuations relative to their prospects’.
Her medium-sized company pick is FTF ClearBridge UK Mid Cap. Its managers opt for companies ‘with brand power and other hard-to-replicate advantages’.
Schooling Latter also likes companies with such qualities. She selects: Premier Miton Tellworth UK Smaller Companies; Unicorn UK Smaller Companies; and WS Raynar UK Smaller Companies, since their managers seem adept at uncovering value.
A broad spread seems wise, since corporate Britain seems to be up for grabs – an opportunity, but a shame nonetheless.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
