UK M&A fuelling 'relentless' de-equitisation drive

Minimal IPO activity

UK M&A has continued at a strong despite minimal IPO activity, but “the pace of de-equitisation is relentless”, Peel Hunt has warned.

In a note from Charles Hall, head of research at the investment bank, he warned that UK M&A activity had accelerated towards the end of 2023 and is set to continue into 2024, which could lead to fewer publicly listed companies. Shareholder activism and M&A surge is a mixed blessing for investment trust sector He argued that the "key driver" of this problem had been the 30 consecutive months of outflows from UK funds, leading to selling pressure and declining valuations. "The negative trend is self-fuelling, as the poor performance of UK equities makes them appear less attractive to...