Private equity keeps picking off London-listed firms – and Westminster barely notices | Nils Pratley
News Source
•Tue, 01 Sep 2026 16:56:59 GMT
📰 What Happened
Bodycote, a Macclesfield-based industrial firm, is set to be sold to the US buyout firm Veritas for £1.65bn. That works out at 940p a share, or £1.85bn including debt. Bodycote is the world's largest provider of heat treatment and specialist metallurgical services. It runs 130 sites in 22 countries and employs 4,000 people.
The rival European firm CVC may still make a higher offer. Bodycote's shares closed at 955p, above the bid price, which shows the market expects another bid. Analysts at RBC say 940p is not a generous price. It sits only 25% above the pre-bid level, and the value matches Bodycote's 10-year average.
🔍 The Backstory
This is the latest in a string of overseas private equity takeovers of London-listed companies. The UK government promises to "reindustrialise" Britain, yet more and more of its industry is falling under foreign ownership. Politicians in Westminster have barely reacted.
London's stock market has struggled to keep firms listed. Cheaper valuations make British companies tempting targets for buyout funds. Each takeover removes another British business from public markets. Critics say the government's talk of rebuilding industry rings hollow when its own companies keep being sold off.
🎯 Why It Matters
Pensions and savings funds rely on listed British firms like Bodycote. When buyout firms take them private, ordinary investors lose the chance to share in profits. Fewer public firms also means fewer British-owned jobs and less home-grown industry.
Bodycote, a Macclesfield-based industrial firm, is set to be sold to the US buyout firm Veritas for £1.65bn. That works out at 940p a share, or £1.85bn including debt. Bodycote is the world's largest provider of heat treatment and specialist metallurgical services. It runs 130 sites in 22 countries and employs 4,000 people.
The rival European firm CVC may still make a higher offer. Bodycote's shares closed at 955p, above the bid price, which shows the market expects another bid. Analysts at RBC say 940p is not a generous price. It sits only 25% above the pre-bid level, and the value matches Bodycote's 10-year average.
This is the latest in a string of overseas private equity takeovers of London-listed companies. The UK government promises to "reindustrialise" Britain, yet more and more of its industry is falling under foreign ownership. Politicians in Westminster have barely reacted.
London's stock market has struggled to keep firms listed. Cheaper valuations make British companies tempting targets for buyout funds. Each takeover removes another British business from public markets. Critics say the government's talk of rebuilding industry rings hollow when its own companies keep being sold off.
Pensions and savings funds rely on listed British firms like Bodycote. When buyout firms take them private, ordinary investors lose the chance to share in profits. Fewer public firms also means fewer British-owned jobs and less home-grown industry.