City Of London
Britain’s Market Rout May Entice Foreign Bidders to UK Companies
- ‘M&A opportunities abound’ after pound selloff, Jefferies says
- FTSE 100 company valuations are the cheapest in 11 years
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A $300 billion rout for British stocks and a plunge in the pound is making UK companies even more attractive to foreign bidders, according to strategists.
“M&A opportunities abound” Jefferies LLP’s Sean Darby wrote, noting that “UK assets are ‘cheap’ in many respects.” Valuations for FTSE 100 stocks have fallen about 30% over the past 12 months, leaving large-cap UK companies looking the least expensive in 11 years. Valuations for FTSE 250 companies have dropped about 40%.