m&a boom


Although Brexit continues to dismay both UK industry and UK investors, its effect on sterling and on stock market valuations has triggered a feeding frenzy for overseas corporates.

Recent deals such as Coca-Cola’s £4bn bid for Costa, Michelin’s £1.3bn purchase of Fenner, Takeda’s mammoth £46bn bid for Shire and the bidding war for Sky underline that, backed by cheap money, foreign companies are lining up to get a piece of the UK pie.

Paul Craig, manager of the Cirilium portfolios, observes, “Many UK stocks have been performing worse than their emerging market peers and global managers are still heavily underweight to the UK. This is fertile ground for UK stock pickers.”