The UK government is closely monitoring a surge in foreign takeover bids targeting British companies, as merger and acquisition (M&A) activity in London has surged to unprecedented levels this year. Business Secretary Peter Kyle emphasized his readiness to intervene under the National Security and Investment Act if necessary to protect key sectors and maintain economic resilience.

Kyle noted the government’s vigilance over recent deal-making, highlighting its legal powers to block transactions deemed a risk to national security or critical supply chains. “We are watching very closely, and we have the legislation there to intervene where we need to,” he said, stressing the importance of balancing protection with openness to foreign investment.

According to data from the London Stock Exchange Group (LSEG), M&A deals involving UK companies have reached £143 billion so far in 2026, tripling the volume recorded at this point last year. This increase is largely driven by foreign investors seeking attractive valuations on London-listed businesses.

Among the high-profile transactions this year, the laboratory testing firm Intertek is preparing to be acquired by Swedish private equity firm EQT for £10.6 billion. This would make Intertek the third FTSE 100 company to be taken over by foreign interests in 2026. Earlier deals saw U.S. asset manager Nuveen complete a £9.9 billion purchase of Schroders, and Zurich Insurance acquire Lloyd’s of London underwriter Beazley for £8.1 billion.

Speculation continues over a potential bid for the financial services giant Legal & General (L&G), which, if realized, could represent an even more significant acquisition within the London market. Additional targets in the current wave include energy group DCC, food ingredients producer Tate & Lyle, defense contractor Senior, and private healthcare provider Spire Healthcare.

This takeover activity has raised concerns about the future health of the UK stock market, particularly given a dearth of new public listings to replace firms being acquired. Kyle acknowledged the challenge but reaffirmed his commitment to protecting “foundational businesses” and supply chains critical to the UK economy. At the same time, he reiterated the government’s support for British companies seeking to invest overseas and its general openness to inward investment deemed beneficial.

Kyle has also previously vowed to shield rapidly growing start-ups from acquisition by foreign rivals, aiming to preserve innovation within the UK.

Dominic Ross, a partner at law firm Clifford Chance, offered insight into the current market dynamics, attributing much of the inbound activity to U.S. investors drawn by perceived undervaluation of UK equities. Ross stated, “Much of the activity we are seeing is inbound into the UK from the US, perhaps due to the continued perception that UK-listed stocks are relatively cheaper.”

As foreign interest in UK companies continues at a brisk pace, the government’s role in scrutinizing and potentially intervening in deals remains a key factor in the evolving landscape of British corporate ownership.