London Daily

Focus on the big picture.
Wednesday, Sep 23, 2026

Britain for sale

Britain for sale

The world is vying for UK companies. Why aren’t the locals interested?
A tobacco company that tries to profit from treating lung diseases “invites unflattering comparisons with the man who, having killed his mother and father”, asks the court for mercy because he is an orphan, said Dasha Afanasieva on Reuters Breakingviews. Yet that is what the world’s largest tobacco company, Marlboro-maker Philip Morris, is seeking to do, with its £1bn bid for Vectura, a UK pharma specialising in medical inhalers. Philip Morris’s pitch – that it “wants to be a ‘wellness’ company and will quit fags one day, honest” – has infuriated medical groups, said Nils Pratley in The Guardian. Rival bidder Carlyle – a major US private equity firm that is hardly “the embodiment of saintliness” – thus finds itself in the unusual position of being able to present itself as the ethical option.

This saga is just one of many playing out in British boardrooms amid this year’s explosion in takeover activity. The defence sector is particularly busy, said Martin Vander Weyer in The Spectator. “Military chiefs have expressed alarm” at a £2.6bn bid for Ultra Electronics, which makes devices that protect naval vessels. And ministers are taking an “active interest” in a £6.3bn US bid for the Coventry components-maker Meggitt. But for all the talk about “the national interest”, there’s “slim chance” that either deal will be blocked. “Relatively cheap, and often with great growth prospects, British companies are suddenly all the rage on the global market,” said Matthew Lynn in The Sunday Telegraph. But one group of buyers is “nowhere to be seen” – our own FTSE giants. “There are plenty of blockbuster deals that might be done.” An offer from Vodafone might be relished by BT shareholders, for instance; and Whitbread, or indeed Unilever, could seize on Greggs, before Coca-Cola or Nestlé swoop. No one would argue for a move towards French style economic nationalism, but it would be “reassuring” if some of our own companies “could see the value that everyone else can”, and had the ambition to pursue it.

Blame the UK’s “broken system”, said Michael Tory in the FT. The reason British firms are cheap – and the FTSE 100 has performed so relatively poorly in capital appreciation terms – is down to the “over-distribution of dividends”. The risk-aversion of British boards largely reflects the aims of their income-hungry, institutional owners. “The UK needs a complementary alternative to private equity to reinvigorate its corporate sector”: mega pension funds, of the sort seen in the US and Canada, that invest at scale, and with long-term risk appetite. Without them, there’s not “much hope” of British capitalism thriving.
Newsletter

Related Articles

0:00
0:00
Close
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
×