takeover activity jumped in 2024. And with the index moving sideways in the second half of the year, may lend themselves to more takeover activity in 2025. In 2024, five FTSE 100 companies received bids.
This is a notable increase from 2023, when no blue-chip stocks were targeted. This shift, while not seismic, suggests that some institutional investors and firms are finding value in Britain’s top-tier stocks. The average value of takeover deals across the broader UK market increased to £1.
07bn in 2024. That’s up from £390m in 2023, indicating a focus on larger, more established companies. To put this in perspective, the total value of recommended bids — those recommended by the board to shareholders — reached £49bn in 2024, compared to £17.
2bn in 2023. While significant, it’s important to note that this figure represents a small fraction of the FTSE 100’s total market capitalisation, which stands at £2.05trn at the time of writing.
FTSE 100 still offers value The perceived undervaluation of UK stocks appears to be a key factor driving interest. Despite the FTSE 100 seeing a 12% increase in value over the past 12 months, 22 companies within the index have experienced negative share price performance during this period. This disparity has created potential opportunities for acquirers.
The macroeconomic environment is also playing a role in this increased interest. The Bank of England’s gradual approach to monetary policy easing, with expectations of the base.
