The UK market witnessed an extraordinary surge in takeover activity on Thursday, with Macquarie launching a fresh £701 million bid for waste management group Renewi, marking the third approach for a London-listed company within 24 hours.
Macquarie’s renewed interest in Renewi follows their previously rejected attempt last year. The Australian asset manager reached a preliminary agreement at 870p per share, representing a substantial 57 per cent premium on Wednesday’s closing price. The news catalysed Renewi’s shares, which soared 45 per cent to 803p by early Thursday afternoon.
The flurry of activity included Abu Dhabi-backed Fortress Investment Group’s acquisition of pub and restaurant chain Loungers for approximately £351 million. Fortress, managing assets worth $48 billion and majority-owned by Abu Dhabi’s Mubadala investment arm, offered 310p per share, delivering a 30 per cent premium to shareholders.
Direct Line, the British insurer, rejected a £3.3 billion takeover offer from rival Aviva, dismissing it as “highly opportunistic” and significantly undervalued. The rejection sparked investor interest, driving Direct Line’s shares up 41 per cent to 224p, reaching an eight-month high.
Investment analyst Dan Coatsworth from AJ Bell highlighted that takeover activity is particularly intense in the middle and lower market cap spectrum. Data from Peel Hunt revealed that thirty London-listed companies received firm takeover offers averaging £1 billion in the first half of this year, compared to 27 offers averaging £443 million in the same period last year.
The surge in UK takeover interest reflects the attractive valuations of British companies, with beaten-down share prices creating compelling opportunities for investors. This trend shows no signs of slowing, as demonstrated by recent high-profile approaches, including the pursuit of FTSE 100 company Rightmove by Rupert Murdoch’s REA group.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.