Why is the world buying British companies?

Something is changing in Britain’s corporate landscape.

According to the Office for National Statistics, the value of foreign acquisitions of UK companies reached £19.2 billion in the first quarter of 2025, compared with £4.0 billion in the previous quarter. It was the highest quarterly value since 2022.

Behind that figure are familiar British names: companies built over decades, employing thousands of people and representing some of the country’s greatest commercial successes.

DS Smith. Britvic. Morrisons. Aveva. OnTheMarket.

Different industries. Different buyers. But they all point towards the same question:

Why are overseas investors increasingly buying British companies?

The obvious answer is positive.

Britain still creates excellent businesses. It has talented entrepreneurs, world-class universities, respected institutions and companies with global reputations. International investors are not buying failure; they are buying success.

But that creates a paradox.

If global investors believe British companies represent outstanding long-term value, why are they so often the ones recognising that value first?

Why Britain Has Become Attractive

For international investors, Britain offers many advantages.

It has a respected legal system, deep financial markets, strong corporate governance and a long history of innovation. British companies operate globally and often have strong brands, specialist knowledge and valuable intellectual property.

Yet many UK-listed companies trade at lower valuations than comparable businesses overseas.

To an overseas buyer, this creates opportunity.

A business that appears overlooked by the domestic market may look like a strategic asset to a global competitor or investment fund.

This is why the debate is not simply about takeovers.

It is about whether Britain has created a market where some of its best companies are easier to buy than they are to grow.

A Pattern Across British Business

The list of overseas acquisitions is becoming increasingly familiar.

DS Smith became part of International Paper. Britvic was acquired by Carlsberg. Morrisons was bought by Clayton, Dubilier & Rice. Aveva became part of Schneider Electric. OnTheMarket was acquired by CoStar Group.

These companies were not failing businesses.

They were successful businesses.

That is what makes the debate more complicated.

A takeover can reward shareholders, bring new investment and create opportunities for expansion. Foreign capital has played an important role in Britain’s economy for generations.

The question is not whether foreign investment is good or bad.

The question is why international investors are increasingly finding attractive opportunities in British companies.

From Growth Stories to Takeover Stories

For generations, investors looked for companies capable of compounding value over decades.

They searched for the next great business before the rest of the market recognised its potential.

But parts of the UK market have developed a different reputation.

Some investors now look not only for companies that can grow, but companies that could become attractive to a larger buyer.

The question becomes:

Is this a great company that the market has simply undervalued?

If the answer is yes, the return may not come from years of independent growth.

It may come from a takeover premium.

That may be a rational investment strategy.

But it raises a bigger economic question.

A successful stock market should not only create opportunities for companies to be bought. It should create the conditions for those companies to become global leaders while remaining valuable to their own investors.

 

The Next Generation of British Companies

The question is not whether every successful British company is for sale.

Most are not.

But across the UK market there are many specialist businesses with qualities that can attract global attention.

Companies such as:

    Rightmove — a dominant property platform with valuable data and recurring revenues.

    Sage — a long-established software company with global customers.

    Savills — a worldwide property advisory business.

    Spirax Group — a specialist engineering company with international reach.

    Renishaw — a world-leading precision engineering business.

    Braemar PLC — a specialist shipping, energy and risk advisory company with international expertise.

These are not predictions of future takeovers. 

They represent something broader: the depth of British expertise and the type of specialist businesses that global investors often value.

The concern is not that Britain lacks great companies.

The concern is whether Britain gives those companies the environment, capital and confidence to become even greater.

The Bigger Question

The debate should not be about stopping overseas investors from buying British companies.

Open markets have helped Britain attract investment, create jobs and compete globally.

The bigger question is this:

Why are international investors sometimes seeing more value in British companies than British investors themselves? and perhaps the most important question is about the future.

Britain has created companies such as Segro, Rightmove and many others.

But will the next generation of entrepreneurs choose Britain as the place to build the next global success story?

Countries become wealthy not simply by creating valuable companies.

They become wealthy when those companies continue to grow, reinvest and create opportunities for future generations.

The greatest risk is not that Britain loses today’s successful businesses.

The greatest risk is that tomorrow’s great businesses are created somewhere else.

The challenge for Britain is not stopping the world from wanting to buy its companies.

The challenge is ensuring that Britain remains the best place to build them.

 

 About Michael Morris Estate Agents

Established in 1994, Michael Morris Estate Agents has over 30 years' experience serving Finsbury Park, N4 and the surrounding areas. We provide expert advice on property sales, lettings and property management, including valuations and market appraisals.

Visit  : https://www.michaelmorris.co.uk/ or call 0207 354 8899.