Public M&A activity levels remained similar to that seen in 2024 and 2023. Q2 was especially busy (49% of offers) but activity slowed in Q3 (19% of offers) and Q4 (16% of offers). The total number of firm offers announced in 2025 for UK public companies listed on the Main Market or AIM came to 57, one up from 2024 and matching that seen in 2023.
32 of the 57 (56%) firm offers were for public companies listed on the Main Market, a slight increase from the 30 firm offers made in 2024 (54% of 56 offers). Despite this, public M&A activity was strongest in the small and mid-cap space, with 47% of all firm offers having a deal value under £250 million and 33% of all firm offers having a deal value between £250 million and £1 billion. Overall, the aggregate deal value in 2025 was approximately £38 billion, down approximately 30% from 2024. The larger deals, including offers for JTC plc, Spectris plc and Deliveroo plc, comprised an even split of private equity and trade bidders.
Activity in private equity-backed offers remained stable from 2024, representing 46% of the total number of firm offers, compared to 43% of the firm offers in 2024. However, in line with the rest of the market, deal values were slightly lower this year with only five private equity-backed offers having a deal value in excess of £1 billion, down from eight in 2024.
Companies from the financial, computer and electronic equipment and real estate sectors remained the most popular with bidders, in line with previous years. The financial sector attracted 14 (25%) firm offers, whereas the computer and electronic equipment sector saw nine (16%) and real estate saw another seven (12%) firm offers.
Target companies and bidders continue to grapple with persistent valuation gaps, with a significant number of UK public companies perceived to be undervalued. Unsurprisingly, overseas bidders have continued to show a steady interest in UK listed assets, with US bidders involved on 18 (32%) firm offers.
