Intertek's £10 billion takeover by EQT sparks concerns over London's listing drought, with the company's board recommending a fourth offer of around £60 per share. This deal marks the third FTSE 100 company to be taken private or acquired this year, following Schroders and Beazley.
The acquisition highlights a growing trend of established UK firms being acquired by private equity, fuelling worries among market observers that London's listing drought is exacerbating its vulnerability to takeovers. The board's decision to recommend the £60 per share offer, despite some reservations about alternative strategies, has been seen as a rational response to the current market environment.
The lack of new company listings on the London Stock Exchange remains a pressing issue, with only three flotations this year failing to reach the FTSE 100. This stands in stark contrast to the ongoing departures, reinforcing perceptions that London is an undervalued market ripe for private equity acquisition rather than a vibrant hub for new public companies.
Doncasters' recent decision to pursue a listing in the United States, seeking a valuation exceeding $4 billion, challenges long-held assumptions about the natural choice of listing venue for mid-market UK aerospace component makers. This move suggests that market participants believe London's listing environment is not competitive enough to attract major new listings.
The failure to address London's listing drought, despite multi-year changes to listing rules and promotional campaigns, continues to be a pressing concern for the industry. Industry commentators are increasingly calling for a significant, high-profile new listing to inject renewed confidence and alter this perception.