Investing.com — is expected to become the latest in a growing line of UK-listed companies to fall into foreign hands as the budget carrier’s potential takeover by Castlelake LP moves forward, prompting fresh warnings that London’s capital markets are caught in a spiral of decline.
The budget airline has agreed to Castlelake’s latest takeover offer, with the acquisition following a string of high-profile departures from the London Stock Exchange.
Asset manager , insurer , and testing and inspection group are among the UK-listed names that have recently attracted or succumbed to foreign acquisition interest, continuing a trend that has seen some of Britain’s most recognisable companies absorbed by overseas buyers.
Nick Saunders, Chief Executive of online investment platform Webull UK, said the pattern reflects deep structural failings in the UK’s capital markets.
“The UK is turning into an incubator economy, from which stocks never graduate. A London listing nurtures companies until they reach a scale to be bought by foreign purchasers,” he said. “The UK is structurally equipped to start companies, but increasingly lacks the market infrastructure to retain global leader.”
Saunders described easyJet’s potential takeover as “an admission of failure,” drawing parallels with the acquisitions of Tate & Lyle and Intertek. “UK companies are simply valued too cheaply and are worth more broken up or integrated into foreign competitors,” he said.
He warned that as more dynamic companies disappear, London is becoming increasingly dominated by “old economy” sectors, making it less attractive to growth-oriented investors.
“The capital markets are sick and in a spiral of decline; fewer listings lead to less domestic investor interest, lower valuations and, in turn, more takeovers,” Saunders added. “Long term, things look bleak.”