London Daily

Focus on the big picture.
Friday, Aug 14, 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 Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
Wildfires Surge Across England and Wales as Fire Chiefs Report Record July
UK Nurses Warn of Heat Risks as Hospital Staff Struggle With Extreme Temperatures
Southern Water Seeks Drought Order for Hampshire and Isle of Wight Amid Water Shortages
UK Heatwave Pushes West London Temperature to 38.1 Degrees as Health Alerts Continue
UK Economy Grows 0.4% in Second Quarter Despite Global Uncertainty
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
UK Residents Gather to Watch Rare Partial Solar Eclipse
Reform UK Deputy Leader Richard Tice Faces Criticism Over Legal Threat Against Guardian Journalist
Michael Forsyth Elected Speaker of the House of Lords
Cambridge Researchers Launch £20 Million Human Organoid Drug Testing Programme
Heathrow Loses European Passenger Traffic Lead to Istanbul Airport
Households Near New UK Electricity Pylons to Receive £250 Annual Energy Bill Discount
UK Government Estimates Zero-Hours Contract Ban Could Cost Employers Up to £3 Billion a Year
Robert Jenrick Leaves Conservatives for Reform UK in Major Parliamentary Defection
UK Police Chiefs Urge Government to Block Early Release of Andrew Harper Killers
UK Government Holds Emergency Cobra Meeting as Drought and Heatwave Raise Wildfire Risks
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
Police Conduct Cross-Border Raids Against Northern England Drug Network
Nicola Sturgeon Protested at Edinburgh Festival Fringe Event
Major UK Retail Chain Enters Administration With One Hundred Fifty-Four Stores Set to Close
Heathrow Renews Call for Runway Expansion After Losing Europe’s Busiest Airport Ranking
Government Condemns One Million Pound Thames Water Executive Bonus Amid Drought
NHS England Says More Than One Hundred Thousand Hepatitis C Patients Have Been Cured
UK Foreign Secretary Ed Miliband Calls for End to West Bank Settler Violence
UK Prepares for Deepest Partial Solar Eclipse Since Nineteen Ninety-Nine
UK Heatwave Triggers Amber Health Alerts as Economic Losses Reach Four Point Four Billion Pounds
UK Offers Electricity Bill Discounts to Communities Hosting New Power Infrastructure
Bank of England Expected to Hold Interest Rates at Three Point Seven Five Percent
UK Government Moves to Ban Subscription Traps and Misleading Retail Discounts
Andy Burnham Gives Councils New Powers to Block Betting and Vape Shops
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
Greater Manchester Councils Gain Powers to Restrict New Vape and Betting Shops
Coroner Finds Treasury Workplace Failures Contributed to Personal Assistant’s Suicide
English and Welsh Courts Ban Meta Smart Glasses Over Recording and Privacy Risks
Strait of Hormuz Disruption Could Double UK Inflation and Trigger Recession, Forecasters Warn
×