Wednesday 08 July 2026 5:36 am  |  Updated:  Tuesday 07 July 2026 11:53 am

Takeovers aren’t the reason the London market is shrinking

By: Henrik Persson

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Takeovers like Schroders and Tate & Lyle grab the headlines but the far bigger problem for London is that there aren’t enough good companies arriving to replace them, says Henrik Persson

There is a familiar account of London’s stock market malaise. UK listed companies are cheap and deeper-pocketed overseas buyers have noticed. Each new approach or offer is treated as another chip from the foundations of the market. Beazley and Intertek supply the FTSE 100 quality angle. Schroders and Tate & Lyle bring the historic British names and long listed heritage. JTC and Bodycote (the latter, until Apollo decided to walk away) contribute the archetype: technically serious, internationally useful, and not much discussed outside investment committees.

The story is understandable because takeovers are unusually exciting events. A bid arrives with a splash, perhaps a big payday for investors, and the potential for drama. If the buyer is foreign, or private equity, the symbolism is also readily available. Most recently the story tends also to say that another UK company is in play and another listed name may leave London, and another example can be added to the argument that London is being hollowed out.

The truth, however, is that public companies have always left the market and that is not obviously a defect in public equity. It is instead part of the bargain. A company floats, raises capital, broadens its shareholder base, grows, acquires, distributes cash and, in time, may be acquired itself. In a well-functioning version of that cycle, an exit crystallises value for shareholders who supported the business along the way. It is inherent........

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