The number of British companies controlled by overseas firms increased by 35% [1] in the years following the Covid-19 outbreak.
This shift represents a significant transformation of the United Kingdom's corporate landscape. The trend indicates that international investors viewed British assets as undervalued during the recovery period, leading to a permanent change in domestic ownership patterns.
According to a Bloomberg reporter, the surge occurred as cheap valuations drove a dealmaking boom [1]. This wave of acquisitions allowed foreign entities to secure control of British businesses at a lower cost than in previous eras. The increase in foreign control reached a record high in 2024 [2].
While the trend is global, specific regions have been particularly active. South African firms have led a quiet expansion into the UK market [2]. These overseas firms have capitalized on the glut of dealmaking to establish a stronger foothold in the British economy.
"Foreign ownership of British businesses has surged to its highest level on record, reflecting a post-pandemic wave of international acquisitions that has reshaped the UK's corporate landscape," a reporter for MSN said [2].
The growth in ownership was not limited to a single sector but was a broad result of the post-pandemic financial environment. The availability of capital combined with depressed asset prices created an ideal window for foreign buyers to acquire majority stakes in UK-based operations [1].
“The number of British companies controlled by overseas firms soared 35% in the years after the outbreak of Covid”
The record level of foreign ownership suggests a long-term shift in the UK's economic sovereignty. By capitalizing on the valuation dip caused by the pandemic, international firms, particularly those from South Africa, have integrated themselves deeper into the UK's industrial base. This trend may lead to increased foreign influence over domestic corporate governance and strategic decision-making for years to come.
