Market Standards Trend Report
Trends in UK Public M&A deals in 2025
Deal value and deal volume
Deal volume
Following a strong start to the year, UK public M&A activity in 2025 showed a marked divergence between the first and second halves. H1 2025 recorded 36 firm offers, the highest first-half volume in the last six years, while H2 2025 saw a sharp decline to 20 firm offers, resulting in a total of 56 firm offers for the year. This represents a 2% increase in overall deal volume compared to 2024 (55 deals).
"The uptick in activity during H1 was not maintained during the second half of the year, although in our view, this is unlikely to be a sign that UK plc is no longer an attractive acquisition proposition. Some of the larger deals in 2025 involved US private equity, which suggests there is still an appetite for the right targets and the cash resources are clearly there to be spent. But as we have seen before, it is still a relatively fragile market and it would not take a lot for confidence to be impacted adversely."
Photo by Will Kennard on Unsplash
Photo by Will Kennard on Unsplash
Deal value
Although deal volumes increased, aggregate deal values remained robust. The total aggregate deal value for 2025 was £40.5bn, down from £54.9bn in 2024, but still significantly above 2023 levels (£19.6bn). The average deal value in 2025 was £723m, lower than 2024 (£997m) but more than double the 2023 average (£350m).
The first half of 2025 accounted for the majority of deal value, with £22bn in H1 compared to £18.5bn in H2, continuing the trend of front-loaded activity seen in previous years. While 2024 was characterised by a surge in mega-deals exceeding £1bn, 2025 saw fewer such transactions, with strategic bidders dominating mid-market deals and private equity activity remaining steady but cautious.
2025 continued the trend of large-cap deals, albeit with fewer mega-deals than 2024. 12 transactions (21%) had deal values exceeding £1bn, compared to 17 (31%) in 2024. Three transactions (5%) exceeded £3bn, and two transactions (4%) exceeded £4bn. These deals included:
- £4.2bn offer for Spectris plc by Kohlberg Kravis Roberts & Co. L.P. (KKR)
- £4.2bn offer for Spectris plc by Advent International, L.P.
- £3.4bn offer for Petershill Partners plc by Goldman Sachs Asset Management L.P.
- £2.9bn offer for Deliveroo plc by DoorDash, Inc.
- £2.4bn offer for Just Group plc by Brookfield Wealth Solutions Ltd.
- £2.3bn offer for JTC plc by Permira Advisers LLP
- £1.805bn offer for Alpha Group International plc by Corpay, Inc.
- £1.79bn offer for Assura plc by Primary Health Properties plc
- £1.77bn offer for Alphawave IP Group plc by Qualcomm Incorporated
- £1.7bn offer for Assura plc by a consortium comprising KKR and Stonepeak
- £1.2bn offer for Bakkavor Group plc by Greencore Group plc
- £1.16bn offer for Dowlais Group plc by American Axle & Manufacturing Holdings, Inc.
"Although 2025 saw a lower number of deals exceed the £1bn benchmark, the pipeline for 2026 is looking promising with corporate and strategic acquirors keen to put the uncertainty of 2025 behind them and press ahead with business as usual."
The two £4.2bn Spectris transactions were standout deals, marking the largest bids of the year and highlighting strong interest in UK industrials from private equity. The £3.4bn Petershill Partners acquisition reinforced the attractiveness of financial services assets, while Deliveroo’s £2.9bn takeover by DoorDash underscored continued strategic interest in UK tech-enabled consumer platforms.
Bid premia
The average bid premium for 2025 was approximately 46%, slightly higher than 2024 (44%) and down from 54% in 2023, with premiums ranging widely from a high of 280% to a low of a 94% discount, reflecting a mix of competitive bidding for strategic assets and distressed situations where offers were made at deep discounts.
"We are seeing significant variation in bid premia payable on takeovers, both within and across different industry sectors. The technology sector continues to attract bids at healthy bid premia (with an average bid premium of 80% in 2025), but natural resources and support services companies have achieved more modest c. 25% bid premia. Listed bidders have shown a greater willingness to pay high bid premia for prime assets, with average bid premia of 61% compared with 37% for PE bidders. We attribute this to listed bidders being prepared to pay a premium for businesses that give them access to important “tech” and/or new markets. Conversely, PE bidders have – with some notable exceptions - been drawn to less "loved" businesses that offer greater turnaround potential."
"Strong equity markets might suggest that there is less need for significant bid premia, but Boards remain focused on this metric and increasingly activist registers mean that bidders have to plot a careful path. Attractive premia remain a critical element of any deal."