Intensified competition in bidding process as KKR presents a new proposal for Spectris acquisition
Rising Tide of Private Equity Takeovers in the UK
A notable trend has emerged in the UK business landscape, with private equity (PE) firms increasingly taking over listed companies. This trend, particularly evident in 2025, has been marked by a series of high-profile deals and heightened market activity.
One of the most recent examples is KKR's fresh offer for precision instrument business Spectris, valuing it at £4.8bn. If approved, this deal would value Spectris at more than double its trading value before the bidding war began. A general meeting to approve the takeover is scheduled for 22 August. The Spectris board now recommends shareholders vote to approve KKR taking over the business.
KKR's latest offer represents a 4.4% improvement on its earlier offer of 4,000p per share. The offer of 4,175p per Spectris share outflanks Advent's previous offer of 4,100p per share, which was made in June.
This trend is influenced by a variety of factors. According to Charles Hall, head of research at Peel Hunt, UK companies are more attractive to acquirors than investors due to the consistent outflow of capital from domestic markets. He suggests an urgent rethink is required to ensure that UK capital backs UK companies.
Daniel Black, Vice President of Business Development at Ideals, attributes the recent wave of US bids for UK-listed companies to a broader shift in the M&A landscape. This shift targets differentiated IP, AI capabilities, and advanced compute technologies, making the UK a natural entry point for US corporates seeking long-term growth in capital-intensive sectors.
The UK government's focus on attracting private capital to support infrastructure and growth also plays a significant role. The resilience of the UK market and expectations of future policy changes maintain strong investor interest, despite high inflation and interest rates that have made some investors more cautious.
The UK is seen as a hub of research excellence and scalable innovation, but market sentiment continues to undervalue these assets. This undervaluation, combined with the strategic desire by US and global investors to diversify into the UK and European markets, has contributed to the increasing trend of PE takeovers.
If approved, Spectris would be added to a growing number of firms leaving the London Stock Exchange. This trend raises questions about the future of UK capital markets and the need for changes to encourage domestic investment in UK companies.
[1] Financial Times, "Private equity firms target UK-listed companies in record dealmaking year," 1 July 2025. [2] Reuters, "UK public M&A activity surges in Q2 as PE firms target energy, fintech sectors," 15 July 2025. [3] City A.M., "UK government's focus on private equity attracts record PE investment," 20 July 2025. [4] The Guardian, "UK Takeover Panel consults on disclosure requirements for IPOs and acquisitions," 25 July 2025. [5] PwC, "Private equity investment in the UK: longer-term focus and operational improvements," 31 July 2025.
- Amid this surge of PE takeovers in the UK, finance professionals are closely monitoring the technological advancements and lifestyle trends in various industries as potential areas for investment.
- As general-news outlets continue to highlight the impact of private equity on UK markets, debates in finance and politics towards encouraging domestic investment and technology growth are gaining momentum.
