London stock market faces takeover wave with few new listings
8 reported
A report from broker Peel Hunt, titled "Selling the Family Silver," documents a significant imbalance in the London stock market since the start of 2023. The report states there have been 154 bids for UK companies valued at over £100 million, totaling £165 billion in market capitalization. Additionally, seven large companies have moved their primary listings from London, removing another £120 billion in capitalization. In contrast, only 11 new listings of companies worth £100 million or more have occurred in London, representing a combined £6 billion. The article notes that recent policy changes, including altered UK listing rules allowing founders greater voting power, have not reversed the trend. The piece suggests that the UK market is underpriced by international standards and that liquidity gravitates toward New York, which accounts for about 70% of global stock market value. The article also mentions that Andy Haldane, president of the British Chambers of Commerce, has called for tax and incentive changes to channel more capital into UK firms.
What’s reported
On Thursday, three takeover bids were announced: Rotork (bought by Swiss group ABB for £4.1bn), Gooch & Housego (bought by a US investment firm for £346m), and Ramsdens (bought from the US for £230m).
Since the start of 2023, there have been 154 bids for UK companies worth over £100m, totaling £165bn in market capitalization.
Seven large companies have moved their primary listings from London, removing £120bn in capitalization.
Only 11 new listings of companies worth £100m-plus have occurred in London, representing £6bn in capitalization.
The UK listing rules were changed to allow founders to retain outsized voting power.
The US accounts for about 70% of the world’s stock market value.
Charles Hall, Peel Hunt’s head of research, proposed measures including a 20%-plus UK weighting in default defined contribution pension schemes and removing stamp duty on share trading.
Andy Haldane called for a shift in incentives and tax reliefs to channel more capital into UK firms, citing the pre-1997 dividend tax credit regime.
Key figures
Charles Hall, Peel Hunt’s head of research
Andy Haldane, president of the British Chambers of Commerce
Rachel Reeves, chancellor (mentioned in context of Mansion House compacts)
Andy Burnham (mentioned in context of Downing Street speeches)
Shabana Mahmood (mentioned as potential No 11 occupant)
Sources: The Guardian
