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The British stock market is declining due to a record number of acquisitions


December, 04 2024
watermark Economic news

The London stock market is shrinking at the fastest possible pace due to active mergers and acquisitions. The number of delisting companies increased by 10% this year, the volume of transactions with British firms increased by 81%, exceeding $160 billion. 


Foreign private capital is actively working in the market, as British stocks are attractive to investors due to a discount of more than 40% to their global counterparts. The main goals are medium-sized companies in the AIM market with low trading volumes and minimal analysis.


Experts warn of the risks of losing the UK's position in the financial market, as companies face difficulties in raising capital. This year, only 11 IPOs worth $1 billion took place on the London Stock Exchange, which is 11% less than last year. 


At the same time, regulators are reviewing listing rules to attract more IPOs and hope to increase activity after their implementation. A decrease in the number of companies is also observed in other markets, which is associated with a decrease in the benefits of publicity and the activation of funds. Some experts believe that a wave of acquisitions can revitalize the market, returning funds to investors for new investments.


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