Ministers on alert as foreign predators target UK business

The Business Secretary has insisted he is keeping a close eye on the takeover activity that has gripped the City in recent months.

Peter Kyle said he will not ‘take a back seat’ and pointed out he has the power under the National Security and Investment Act to step in and block deals.

‘We are watching very closely, and we have the legislation there to intervene where we need to,’ he told the Mail.

Foreign predators on the hunt for bargains are scouring the London stock market for firms they can snap up cheaply.

The rush of foreign bids for UK companies has put Britain on track for a record year in deal-making, with merger and acquisition (M&A) activity totalling £143billion so far in 2026, according to LSEG data. That is triple this time last year.

Laboratory testing group Intertek looks set to become the third FTSE 100 firm to fall into foreign hands this year after last week indicating it would accept a £10.6billion offer from Swedish private equity suitor EQT.

It follows the £9.9billion takeover of Schroders by US rival Nuveen and Zurich Insurance’s £8.1billion deal to buy Lloyd’s of London underwriter Beazley.

In what could be an even bigger blow to the stock market, there has been speculation that City financial giant L&G could be a target.

The takeover frenzy – which has also seen energy group DCC, ingredients maker Tate & Lyle, defence supplier Senior and private hospital owner Spire Healthcare become targets – has fuelled fears over the health of the stock market. 

It comes amid a shortage of new listings to replace those firms being bought out.

Asked by the Mail about the flurry of deal-making, Kyle said: ‘I’m not ever going to take a back seat when it comes to the need to maintain resilience and supply chains and foundational businesses in our country.’

He added: ‘These are things I monitor very closely, but that is balanced with the need for British businesses to be able to invest abroad, and welcoming investment here where it’s appropriate.’

Kyle has previously pledged to protect fast-growing start-ups from being ‘swallowed up by foreign competitors’.

Dominic Ross, a partner at Clifford Chance, said: ‘Much of the activity we are seeing is inbound into the UK from the US, perhaps due to the continued perception that UK-listed stocks are relatively cheaper.’