Shares in UK Engineering Group Jump After String of Takeover Bids

By the Editorial Team · Wednesday, September 30, 2026

Dutch company RHI Magnesita has made a £1.37 billion takeover offer for British engineering firm Vesuvius, combining cash and shares to value Vesuvius at a significant premium over previous bids. This proposal, supported by activist investor Cevian, could give Vesuvius shareholders a 13 percent stake in the merged company, highlighting growing foreign interest in UK industrial firms amid a surge in high-value inbound acquisitions.

Shares in British engineering firm Vesuvius surged sharply following the announcement of a new takeover bid from Dutch rival RHI Magnesita. The FTSE 250-listed company revealed it had received multiple acquisition proposals since March, with the latest offer valued at approximately £1.37 billion. This bid, made in August, is a combination of cash and stock and values Vesuvius shares at 551 pence each, a significant premium over the previous proposals which the company had rejected earlier in the year.

Under the terms of the current offer, Vesuvius shareholders would receive 470 pence per share in cash plus 0.28 new shares of RHI Magnesita for every ten Vesuvius shares held, equating to 7.1 million new RHI shares in total. This arrangement would give existing Vesuvius shareholders a 13 percent stake in the merged business. Additionally, they would be entitled to a 7.1 pence dividend per share, which had previously been declared by Vesuvius’ board. Following the announcement, Vesuvius shares closed up by around 24.3 to 24.7 percent, reaching 467 pence, reflecting increased investor interest in the potential deal.

Vesuvius, headquartered in London and employing approximately 10,900 people, specializes in equipment and technologies used to control molten metal flows in industrial settings. The company stated that it continues to evaluate RHI Magnesita’s latest proposal, describing the previous bids as unsolicited and non-binding. It also highlighted support from Cevian, an activist investor holding a long-term stake in Vesuvius, which has expressed backing for the transaction.

RHI Magnesita, based in Arnhem, Netherlands, and also a FTSE 250 firm, has been pursuing a takeover since March. Following the recent announcement, shares of RHI Magnesita saw a slight decrease of about 0.2 percent to close at £28.20 in London.

The bid comes amid a broader trend of increased foreign acquisition activity targeting UK-based companies this year. Data from the London Stock Exchange Group indicates that inbound mergers and acquisitions have nearly doubled, with the total value of foreign deals reaching a five-year high of $196.1 billion. This surge is driven primarily by several large-scale transactions, including Prologis’s acquisition of Segro, Engie’s bid for UK Power Networks, and purchases involving firms such as Intertek, Schroders, and Beazley.

Despite the rise in deal values, the total number of M&A transactions in the UK has declined by 16 percent so far this year to 3,394 deals. Nonetheless, the UK remains the third most active market globally for mergers and acquisitions, behind the United States and China, with overall transaction values increasing by 75 percent to nearly $243 billion. The ongoing activity reflects a dynamic market environment influenced by rising strategic interest from overseas investors in key British industrial and financial sectors.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.