London Daily

Focus on the big picture.
Tuesday, Jun 16, 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
UK Supreme Court Revises Legal Definition of Deprivation of Liberty
King’s Birthday Honours Recognise Contributions Across Science, Culture and Public Service
UK Ministry of Defence Reports Interdiction of Russian Shadow Fleet Vessel
UK and US Launch Joint Regulatory Programme for Medicines and Healthcare Products
Solicitor General Refers Murder Sentence to Court of Appeal Under Unduly Lenient Scheme
UK Launches £1.6 Million Mobile Museum Initiative to Expand Cultural Access
Judicial Pay Structure Undergoes Government Review Following Senior Recommendations
Government Confirms Nearly 180 New Youth Hubs Across the United Kingdom
UK Government Expands Careers Support Through Partnership with LinkedIn
Digital News Report Highlights Growing Global Concern Over AI and Information Overload
UK Chancellor Reaffirms Fiscal Discipline and Borrowing Reduction Strategy
UK Government Invests £219 Million in Sustainable Aviation Fuel Development
Rolls-Royce Small Modular Reactors Secures Major Swedish Export Contract
Government Confirms Locations for Nearly 180 Youth Hubs Across Great Britain
UK Government Partners with LinkedIn to Expand Employment Support Services
Reuters Institute Report Flags Rising Public Anxiety Over News and Information Overload
UK Government Commits £219 Million to Expand Sustainable Aviation Fuel Industry
Chancellor Convenes Market Engagement Group to Assess UK Economic Outlook and Productivity Risks
Rolls-Royce Wins Multibillion-Pound Swedish Contract for Small Modular Nuclear Reactors
Government to Ban Social Media Access for Under-Sixteens Across the United Kingdom
Government Approves Fast-Tracked Broadcast Merger Reshaping UK's Media Landscape
Resignation of Defence Secretary John Healey Triggers Debate Over UK Military Strategy
Britain Intensifies Diplomatic Efforts to Support US-Iran Ceasefire
Bank of England Faces Tough Interest Rate Choices After Economic Contraction
Belfast Sees Second Day of Anti-Migrant Riots as Police Deploy Water Cannons
UK Economy Shrinks in April as Energy Price Shocks Weigh on Growth
UK to Ban Social Media Access for Children Under 16 From 2027
UK Parliament Opens Week of Fast-Tracked Security and Infrastructure Legislation
Northern Ireland Projects £21 Million Boost From Major Cultural and Sporting Events
UK and Japan Sign Technology Security Pact to Strengthen AI and Supply Chain Cooperation
UK Welcomes US-Iran Peace Breakthrough Aimed at Restoring Strait of Hormuz Shipping
British Forces Intercept Russian Shadow Fleet Oil Tanker in English Channel Sanctions Operation
UK to Ban Social Media for Under-16s Under Landmark Online Safety Expansion
Anti-Immigrant Riots Spread Across Belfast, Raising Security Concerns
Ministry of Defence Opens Europe's Largest Drone Testing Facility in Swindon
Kemi Badenoch Calls for Deregulation to Restore City's Global Competitiveness
UK Housing Market Posts Sharpest June Price Decline in Fourteen Years
NHS Waiting Lists Rise to 7.22 Million as Diagnostic Delays Reach New Highs
Makerfield By-Election Raises Prospect of Labour Leadership Challenge
Bank of England Expected to Hold Interest Rates at 3.75% Despite Growing Policy Divisions
Royal Marines Seize Sanctioned Russian Oil Tanker in English Channel
Prime Minister Keir Starmer Set to Ban Social Media and AI Chatbots for Under-16s
United Kingdom Markets Rally After US-Iran Deal Reopens Strait of Hormuz
Defence Secretary John Healey Resigns Over Military Spending Dispute, Triggering Cabinet Crisis
Royal Navy Takes Part in Trooping the Colour for the First Time in 350 Years
Think Tank Warns Labour's European Union Reset Could Carry Significant Economic Costs
UK Semiconductor Centre and Japan's Rapidus Forge Advanced Chip Manufacturing Partnership
UK and Japan Launch Offshore Wind Compact Backed by £9 Billion in Investment
Starmer and Trump Discuss Iran Peace Efforts and Reopening of the Strait of Hormuz
United Kingdom and Japan Sign £18 Billion Investment Partnership Focused on Clean Energy and Advanced Technology
×