Buy now while stocks last: The three drivers of M&A in the UK mid-cap space

Allianz Global Investors's Simon Gergel

Simon Gergel, CIO UK equities at Allianz Global Investors evaluates the three key factors driving interest in UK companies despite ongoing uncertainties surrounding Brexit and political risk.

We have now had five takeover approaches or full bids for UK mid-cap companies in the last two months. At a time when many international investors are shunning the UK stockmarket, and UK investors are nervous about Brexit and political risk, what is driving corporate enthusiasm for these businesses? I think there are three major factors. First, there is a fantastic valuation opportunity in the UK. While the overall market has been hitting new highs, and certain sectors are looking expensive, there is extreme polarisation within the market.  Many domestically exposed sectors trade on l...