May 28, 2024
Royal Mail and Anglo bids face double deadline as UK M&A hits heights
Bids for two of the UK's biggest corporate names face a key deadline this week, with Royal Mail's owner and Anglo American both edging closer to being sold as overseas bidders vie for relatively cheap British companies. Czech billionaire Daniel Křetínský is in talks to acquire Royal Mail owner International Distribution Services in a £5bn deal, while Australian mining group BHP is attempting to seal a £39bn takeover of Anglo American. "There are still so many high quality global companies listed in the UK and the valuation gap to the US - even with the market going up - is still enormous," said Philip Noblet, head of UK & Ireland Investment Banking at Jefferies, who expects more takeovers over the coming months. Only last week, UK retail investment platform Hargreaves Lansdown said it had rejected a nearly £5bn takeover approach from a group of private equity firms including CVC. Sian Evans, Citi's head of UK M&A, said she felt that M&A activity was "Near as high as I've seen it" while Kate Cooper, an M&A partner at law firm Freshfields, noted what she called an "Amazing confluence at the moment of a lot of strategic bidders . . . Boards are finding their appetites back after a period of less certainty." The Labour party, which is far ahead in opinion polls, has promised to "Safeguard" the Royal Mail and has sought confirmation from Křetínský that the business would continue to be run from the UK. Meanwhile, BHP's pursuit of Anglo American faces several challenges.
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