Overseas investors accounted for the vast majority of acquisitions involving UK companies in the first three quarters of 2026, significantly outspending domestic buyers, according to recent data. Foreign investors completed deals worth £74.1 billion between January and June 30, compared with just £800 million from UK-based buyers. In terms of transaction volume, foreign entities completed 759 acquisitions, surpassing the 605 deals completed by domestic investors.

Notable overseas takeovers included the purchase of Schroders by Nuveen, an American asset manager, and the acquisition of Lloyd’s of London insurer Beazley by Zurich, a Swiss rival. Claire Trachet, founder and CEO of the advisory firm Trachet, noted that UK investors have long struggled to match the financial power of foreign buyers on deal value, but are now also being overtaken in the number of deals completed. She pointed to a record four consecutive quarters in which foreign acquisitions outpaced domestic ones. Trachet emphasized that while foreign investment can provide UK companies with crucial funding, scale, and international access, the relative weakness of domestic dealmakers remains a significant concern.

The trend extends beyond mergers and acquisitions. London’s financial markets have experienced a notable shift as several UK-based companies have chosen to launch initial public offerings (IPOs) overseas. Since the start of 2023, seven UK firms with a combined market capitalization of approximately £270 billion have opted for foreign listings. Additionally, companies worth around £120 million have moved their existing listings to markets abroad.

Charles Hall, head of research at investment bank Peel Hunt, pointed to recent regulatory reforms aimed at enhancing the UK’s attractiveness as a listing venue. He stated that these changes have increased flexibility and competitiveness in the UK market, leading to some transactions that might not have otherwise occurred. While Hall expressed optimism about the IPO pipeline, particularly among larger companies considering UK listings, he acknowledged that merger and acquisition activity continues to substantially outpace the number of new public listings.

The business, innovation, science and trade committee of Members of Parliament recently criticized the government for declining to conduct a further review of potential measures to support the City of London. In response, ministers highlighted the reforms already implemented, describing them as comprehensive and well received by the financial services sector. They stressed the importance of allowing regulatory changes to fully take effect before pursuing additional reviews or adjustments.