Bargain UK stockmarkets set for a boom in mergers and acquisitions
Bargain-hunters sense opportunity in UK stockmarkets: there have been 14 takeover deals in the past month alone.
The FTSE 100 has enjoyed its best month in 31 years. Britain’s blue-chip index gained 12.4% in November, adding more than £180bn to its market value. You would have to go back to January 1989 to find a more profitable month for UK investors.
Despite the gains, the FTSE 100 remains down 16% so far this year. The UK market “has been a dog” ever since the 2016 Brexit vote, says Russ Mould for AJ Bell. But as any investor knows, the aim of the game is to “buy low” and sell high. Bargain-hunters sense opportunity. There have been 14 takeover deals in the past month alone. To quote the writer Joseph Campbell, “the cave you fear to enter holds the treasure you seek”.
Private-equity firms have accumulated a global war chest estimated at $2.5trn, says Ben Martin in The Times. Recent bids for the AA and McCarthy & Stone show they are ready to spend in London. Data from Peel Hunt shows that there have been £22.8bn-worth of bids for London-listed firms since the start of August, never mind the awkwardness of negotiating a multimillion-pound acquisition over Zoom.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
There could be more to come. Some potential buyers are reportedly holding back while London and Brussels hash out a deal. When there is more clarity on that point, they stand ready to swoop.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published
-
UK mid-caps: an improving outlook
UK mid-caps have perked up and the rally may run further, but long-term investors should remain selective
By Cris Sholto Heaton Published
-
The tobacco industry is going smoke-free - how to profit from it
Tobacco companies have realised their traditional products are on the wane. But new opportunities have opened up – and should prove lucrative
By Rupert Hargreaves Published
-
Is it time to invest in creative industries?
Any industrial strategy should not overlook the creative industries, one of our top national assets
By David C. Stevenson Published
-
Is Mercia Asset Management set for success?
Mercia Asset Management helps the government fund smaller companies in Britain’s regions. Should you invest?
By Rupert Hargreaves Published
-
British stocks set for a boost
British stocks are due for a bounce as the UK looks more stable compared to many economies
By Alex Rankine Published
-
Ocado shares jump by a fifth
Ocado takes a turn for the better after attractive profit forecasts were announced
By Dr Matthew Partridge Published
-
The AI boom is on borrowed time
The hype around the AI boom could be on its way out – but why?
By Alex Rankine Published
-
Diploma: a blue-chip set for strong growth
Diploma, whose niche products include seals and fasteners, serves an array of growth markets. Should you invest?
By Dr Mike Tubbs Published