Foreign buyout groups bid for Bodycote as London deals flurry persists

By the Editorial Team · Thursday, August 6, 2026

Private equity firms CVC Advisers and Veritas Capital have each submitted takeover offers valuing Bodycote at around £1.56 billion, with the company’s board open to recommending either bid pending formal proposals. This renewed acquisition interest has pushed Bodycote’s share price up over 22% and reflects a broader surge in foreign takeovers of UK-listed companies, raising questions about the future of London’s stock market.

Bodycote, the London-listed thermal processing and industrial services company, has received two closely matched takeover proposals from private equity firms CVC Advisers and Veritas Capital. Both bids value the company at approximately £1.56 billion, or nearly £1.8 billion including debt, with CVC offering up to 915 pence per share and Veritas slightly below at 914 pence per share.

The company’s board has reviewed both offers and indicated it would be “minded to recommend” either proposal if they develop into firm bids. Bodycote is engaging separately with each group on an expedited basis, having granted both parties access to confirmatory due diligence. The takeover interest has sparked a notable increase in Bodycote’s share price, which rose over 22% to close near 920 pence per share.

Bodycote provides services such as heat treatment, metal joining, and application of protective metallic coatings to manufacturing clients. It is a constituent of the FTSE 250 and has demonstrated recent growth, reporting a 9% increase in core revenue during the first four months of 2026 compared with a 5% decline in the same period last year.

The renewed acquisition activity follows the withdrawal of a previous bid from Apollo Global Management in June, when the US asset manager abandoned an offer of 885 pence per share, valuing the company at about £1.52 billion. Following that, Bodycote’s board expressed confidence in the business’s prospects and its strategy for growth.

The takeover bids come amid a broader trend of increased foreign acquisition interest in UK-listed firms. London has seen a notable outflow of companies agreeing to take-private deals or foreign buyouts this year, raising concerns among government officials and market participants about the vitality of the city’s stock market. The combined value of UK-listed companies acquired rose nearly 190% in the first seven months of 2026 compared to previous years, marking the highest level recorded since at least 2007. Other notable recent transactions include takeovers of large London-listed groups such as the property firm Segro, testing company Intertek, asset manager Schroders, and insurer Beazley.

Representatives for CVC and Veritas did not provide immediate comments on their proposals. Bodycote’s board continues to evaluate the competing bids while pursuing a formal offer announcement in the near term.

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