How YOU can profit as foreign predators circle home-grown businesses

American and other foreign predators are in a frenzy to buy British firms, and this takeover spree may fill you with dismay over the loss of often historic household names to overseas ownership.

But ignoring this stock market phenomenon of the summer of 2026 could be an expensive mistake. Being an investor sometimes means mixed emotions.

Some $192billion of foreign bids have already been made this year, which is three times the amount at the same time in 2025. 

This week it emerged that Tate & Lyle – the FTSE 250 ingredients group set up in 1921 – could be about to succumb to a £2.75billion takeover from the US business Ingredion.

This followed news that Intertek, the FTSE 100 product certification group, could be snapped up for £9.4billion by EQT, a Swedish private equity player. 

This disclosure has sent Intertek shares to 5480p, some 18 per cent higher than in January.

Shares in Spire Healthcare have jumped more than 33 per cent this year, too. The firm is being targeted by British activist investor Toscafund Asset Management, which may be ready to pay £1billion.

These deals make it apparent that predators see British companies as, sometimes ludicrously, undervalued. 

Schroders, the asset manager, is an example. In February, Schroders’ market capitalisation was £7.6billion. Then US investment group Nuveen came on the scene, ready to spend £9.9billion on the business founded in 1804.

There are various causes for the unloved nature of UK shares. The FTSE 100 has been held back by its lack of tech shares.

The tech-focused Nasdaq index in the US has jumped by 13 per cent since January, propelled by

the passion for artificial intelligence (AI) and semiconductor stocks. The broader S&P 500 has also risen by 8 per cent. Over the same period, the FTSE 100 is up by just 5 per cent, dragged down too by the nation’s economic and political woes.

Nevertheless, overseas investors appear able to see beyond these conditions, perceiving Britain as bargain-hunting territory.

If you are wondering what the excitement is about, here’s what you need to know.

Allure of Britishness 

Despite the uninspiring background, Alan Dobbie, of the Rathbone Income Fund, suggests the foreign takeover trend sends a strong signal that UK investors, willing to look beyond current turmoil, should reassess Britain’s potential. 

He said: ‘It’s often at times like this that longer term investors start to lean-in and take a closer look.’

Jean Roche, manager of the Schroder Mid-Cap fund, highlights the surge in share buybacks, in which companies buy their own shares to boost their share price.

She said: ‘The UK has become the buyback capital of the world, which is a clear signal that management teams believe their own shares are too cheap.

Broker AJ Bell’s calculations show that £34.6billion worth of buybacks had been announced by the end of April by Sainsbury’s and others. 

Investment director Russ Mould suspects yet more buybacks could be revealed by banks and oil companies in coming weeks.

Is it worth backing the UK? 

British businesses are not only considered to be undervalued, they also present fewer problems to a predator than the firms of other countries. 

Anna Macdonald, of broker Hargreaves Lansdown, said: ‘Britain’s companies are English-speaking and internationally oriented. This makes integration straightforward for most overseas buyers.’

She continued: ‘Companies listed on the London market typically have broad, dispersed shareholder bases.

‘By contrast, many European companies have large anchor shareholders, in the shape of the families, foundations or even the state.

‘Such investors have longer-term horizons, and little inclination to sell. The UK’s openness has made it the path of least resistance for overseas capital.’

Juliet Schooling Latter, of FundCalibre, said that larger British companies should be well-positioned if inflation becomes more of a threat, making them even more attractive to would-be suitors – but also a decent proposition even if no offers arrive.

Next potential targets? 

Speculation surrounds an array of companies. Canadian group Intact Financial Corporation is said to be eyeing up insurer Hiscox, whose shares have leapt by 28 per cent since January.

Rival Legal & General may be denying that it is anyone’s love object. But this does not still the rumours that Wall Street titans such as Apollo, BlackRock, Blackstone and Brookfield could be interested. 

But if you are contemplating taking a stake, it is not certain whether the regulators would readily permit a takeover of Legal & General since it is the custodian of £200billion of our pension savings.

This week Premier Inn owner Whitbread was instructed by Corvex Management, one of its US investors, to find a buyer. And speculation is mounting that US giant KKR is sizing up energy solutions specialist DCC.

Roche suspects there will be more approaches for smaller and medium-sized businesses. She cites the pork and poultry processor Cranswick, whose shares have climbed by 11 per cent since January.

The fund picks

UK stocks have fallen so far out of fashion that your portfolio may be mostly composed of US tech shares or global funds heavily weighted towards tech titans Meta, Microsoft and Nvidia. 

This suggests diversifying into Britain may be wise, even if the bid frenzy slows, which seems unlikely.

AJ Bell’s best-buy UK active funds are Fidelity Special and Liontrust UK Growth. Its tracker picks are two exchange traded funds: iShares Core FTSE 100; and Vanguard FTSE 250 (one of the true-Brit parts of my portfolio).

For those who want wider exposure, Macdonald cites Artemis UK Smaller Companies, whose managers seek out companies that ‘trade on attractive valuations relative to their prospects’.

Her medium-sized company pick is FTF ClearBridge UK Mid Cap. Its managers opt for companies ‘with brand power and other hard-to-replicate advantages’.

Schooling Latter also likes companies with such qualities. She selects: Premier Miton Tellworth UK Smaller Companies; Unicorn UK Smaller Companies; and WS Raynar UK Smaller Companies, since their managers seem adept at uncovering value.

A broad spread seems wise, since corporate Britain seems to be up for grabs – an opportunity, but a shame nonetheless.