Foreign ownership of British companies rose 35% [1] in the years following the outbreak of Covid.
This surge in overseas control highlights the vulnerability of the UK economy to external acquisition during periods of financial instability. The trend underscores how depressed asset prices can lead to a rapid shift in national corporate ownership.
According to reports, cheap valuations drove a dealmaking boom [1]. This environment allowed overseas firms to acquire British assets at a significant discount, leading to a glut of deals across various sectors.
The acquisition spree was particularly evident in the transport and retail industries. These sectors saw a takeover surge valued at £35 billion [2], as foreign buyers capitalized on the market conditions.
Analysts said that the timing of these acquisitions coincided with the economic fallout from the pandemic. The resulting dip in company valuations made UK firms attractive targets for international investors seeking long-term growth at a lower entry price.
Bloomberg said that "cheap valuations drove a dealmaking boom" [1]. The increase in foreign control reflects a broader pattern of global capital flowing into markets where assets are perceived as undervalued.
While the influx of capital provides immediate liquidity, the long-term impact on domestic control of critical infrastructure, and retail chains remains a point of discussion among economic observers. The 35% [1] increase represents one of the most significant shifts in corporate ownership in recent years.
“Foreign ownership of British companies rose 35% in the years following the outbreak of Covid.”
The rapid increase in foreign ownership suggests that the UK's post-pandemic economic recovery was marked by a period of significant asset undervaluation. By allowing a £35 billion shift in the transport and retail sectors, the UK has effectively traded domestic corporate autonomy for foreign capital investment. This trend may leave the UK economy more susceptible to the strategic priorities of overseas parent companies rather than domestic economic needs.
