The London Stock Exchange is facing "material depopulation" due to a surge in mergers and acquisitions (M&A) predominantly driven by overseas buyers, a leading investment bank has warned. Peel Hunt reports 42 ongoing bids for London-listed firms, with a collective market capitalisation of £74bn. This figure more than doubles the £35bn across 40 bids seen in the entirety of 2025.
Overseas bidders represent 64% of the 2026 figures, a level broadly consistent with the previous year. However, this active deals market coincides with a "dearth of IPOs." Since the beginning of 2023, there have been 166 bids for firms valued over £100m, totalling more than £180bn. In contrast, only 11 IPOs above £100m have occurred, with a total value of £6bn.
Charles Hall, head of research at Peel Hunt, stated that the number and value of bids for UK firms are at "exceptionally high levels," raising concerns about a "material depopulation" of the UK equity market. Airtel Money's £5.3bn IPO last week marked the largest listing in five years and the first London Stock Exchange IPO exceeding £1bn since 2021.
The City has struggled to compete with US markets, with seven UK giants shifting their listings since 2023, resulting in a £120bn impact on the London market. During the same period, seven UK-based firms have also chosen to IPO overseas. City minister Lucy Rigby noted that capital markets reform is "not a job done" and the government is "continually looking for ways that we can ensure we’re being as competitive as possible."