{"id":190169,"date":"2025-06-16T23:13:17","date_gmt":"2025-06-16T23:13:17","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/190169\/"},"modified":"2025-06-16T23:13:17","modified_gmt":"2025-06-16T23:13:17","slug":"london-exodus-is-hurting-economy-peel-hunt-boss-sounds-alarm-amid-takeover-frenzy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/190169\/","title":{"rendered":"London exodus is hurting economy: Peel Hunt boss sounds alarm amid takeover frenzy"},"content":{"rendered":"

By JOHN-PAUL FORD ROJAS<\/a> <\/a> <\/p>\n

Updated: 17:00 EDT, 16 June 2025 <\/p>\n

Peel Hunt has warned that the exodus of companies from the London stock market is causing a \u2018significant challenge\u2019 to the economy.<\/p>\n

The investment bank\u2019s boss Steven Fine said more companies could be hoovered up by private equity firms in the months to come despite signs of a pick-up in UK valuations.<\/p>\n

London has seen 30 of its listed firms subjected to takeover bids so far this year with few signs of any revival in initial public offerings (IPOs) that will be needed to replace them.<\/p>\n

And in the past couple of weeks, the decision of fintech Wise to abandon London in favour of New York as well as the takeover sagas engulfing the likes of Alphawave and Spectris have added to the impression that the cheap valuations of the London market have left UK-listed firms vulnerable.\u00a0<\/p>\n

Metro Bank this weekend became the latest subject of takeover speculation.<\/p>\n

Shareholders in takeaway platform Deliveroo yesterday voted to accept its \u00a32.9billion takeover by US giant DoorDash.<\/p>\n

\"Threat: <\/p>\n

Threat: Peel Hunt boss Steven Fine (pictured) said even more companies could be hoovered up by private equity firms in the months to come.<\/p>\n

The IPO weakness has weighed on City firms such as Peel Hunt, which yesterday reported that pre-tax losses for the year to the end of March had widened to \u00a33.5million from \u00a33.3million a year ago.<\/p>\n

A spokesman said: \u2018The increasing rate at which companies are exiting the London market presents a significant challenge for the UK economy.\u2019<\/p>\n

Fine added: \u2018You either believe in public markets \u2013 that they do good, in transparency, disclosure, investability, liquidity, they pay more tax, they employ more people, the large companies always start small \u2013 or you don\u2019t.\u2019\u00a0<\/p>\n

Peel Hunt reported that market activity during its past financial year was hit by economic fears and tariff uncertainty but that the new period has \u2018started more positively\u2019 as the Trump administration signed a trade deal with the UK and the Bank of England cut interest rates<\/a>.<\/p>\n

Fine, meanwhile, warned there could be more private equity swoops to come. He said: \u2018I don\u2019t think that\u2019s going to stop, even though the market is re-rating a little \u2013 there is still a strong perception out there that the UK is cheap \u2013 relative.\u2019<\/p>\n

He lamented reports over the weekend that Australian bank Macquarie may swoop for three of Britain\u2019s small airports.<\/p>\n

\"\" <\/p>\n

\u2018Why are we selling to an Australian infrastructure fund?\u2019 he said. \u2018They\u2019re so cheap, they\u2019re such good value. Why don\u2019t we care here?\u2019<\/p>\n

Fine believes that there is a \u2018recognition\u2019 now in government that \u2018this is a bit excessive\u2019.<\/p>\n

\u2018London is a global financial centre \u2013 it should be a global financial centre,\u2019 he said.<\/p>\n

Companies to have quit London in recent months include building materials firm CRH, gambling giant Flutter, and equipment hire group Ashtead.<\/p>\n

Barbarians’ bid battle <\/p>\n

A Private equity titan is locked in two bidding wars for London-listed firms.<\/p>\n

New York giant KKR \u2013 which featured in the book and film Barbarians At The Gate \u2013 is battling it out for scientific instruments maker Spectris and GP surgery owner Assura.<\/p>\n

KKR has seen two offers rejected by Spectris, which last week said it was \u2018minded\u2019 to back a \u00a33.7bpillion bid from rival private equity house Advent International, sending its shares soaring.<\/p>\n

Spectris shares rose another 5.8\u00a0per cent yesterday on hopes the bidding war will escalate.\u00a0<\/p>\n

As well as battling Advent for Spectris, KKR was in pole position to buy Assura after the NHS landlord\u2019s board last week backed a \u00a31.7billion offer.\u00a0<\/p>\n

But yesterday Assura said it would also look at an improved offer from rival Primary Health Properties.<\/p>\n

DIY INVESTING PLATFORMS\"EasyAJ Bell\"EasyAJ Bell<\/p>\n

Easy investing and ready-made portfolios<\/p>\n

\"FreeHargreaves Lansdown\"FreeHargreaves Lansdown<\/p>\n

Free fund dealing and investment ideas<\/p>\n

\"Flat-feeinteractive investor\"Flat-feeinteractive investor<\/p>\n

Flat-fee investing from \u00a34.99 per month<\/p>\n

\"AccountInvestEngine\"AccountInvestEngine<\/p>\n

Account and trading fee-free ETF investing<\/p>\n

\"FreeTrading 212\"FreeTrading 212<\/p>\n

Free share dealing and no account fee<\/p>\n

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.<\/p>\n

Compare the best investing account for you <\/a><\/p>\n

Share or comment on this article:
\n London exodus is hurting economy: Peel Hunt boss sounds alarm amid takeover frenzy<\/p>\n