In 2024, British companies worth £145 billion were purchased, with just over half of the sum coming from foreign buyers.
The total represented a 51 percent increase on the same period a year earlier, according to figures compiled by the London Stock Exchange Group (LSEG).
According to the report, the acquisitions came amid signs of a pickup in overall deals in the UK, including both sellers and buyers.
British companies worth £74 billion were gobbled up by foreign buyers, a 21 per cent increase on 2023. That represented 51 per cent of the value of all British companies acquired.
They included the £3.3bn sale of pumpkin maker Robinsons Britvic to Danish brewer Carlsberg and the £4.3bn acquisition of cybersecurity firm Darktrace by US private equity firm Thoma Bravo.
All-British deals amounted to £72bn, more than double the total seen in 2023.
They included Nationwide Building Society’s £2.9bn purchase of rival lender Virgin Money, and insurer Aviva’s £3.7bn takeover of smaller rival Direct Line.
Sold: Darktrace was acquired by US private equity firm Thoma Bravo for £4.3bn
The sale of UK-listed companies has helped fuel fears about London’s declining status as a global listing venue.
Buyers based both in Britain and abroad have been taking advantage of bargain valuations to snap them up cheaply.
The latest figures from LSEG showed that the UK was the third most targeted country for mergers and acquisitions this year, after the United States and China.
At the same time, some London-listed companies have chosen to shift their listings to foreign exchanges such as New York, including Flutter, the gaming giant and owner of the Paddy Power brand, as well as equipment rental company Ashtead Group.
There has been a shortage of new listings in London to replace departing companies.
Cambridge-based Arm Holdings’ decision to hold its initial public offering in New York in 2023 was a particularly hard blow.
Last year’s increase in acquisitions of British companies contributed to an increase in the overall level of deals in the UK involving British companies. It rose 33 per cent to £259bn.
However, that compares to a weak year in 2023, which was the worst in terms of deals in 14 years.
Lucille Jones, senior manager at LSEG Deals Intelligence, said: “After a year of quiet M&A activity in 2023, when deals were put on hold amid geopolitical instability and elevated interest rates, we are seeing the beginning of an uptick in mergers and acquisitions in the United Kingdom.
“The value of deals announced this year involving British companies has increased by a third compared to 2023, making the UK the most active deal-making hub in Europe.
“While interest rates remain historically high, attractive valuations and a more stable trading environment may spur further activity next year.”