The start of July saw a striking return of foreign and private-equity buyers to UK markets, with landmark deals in insurance, industrials, banking, and healthcare property. Executives are navigating a regulatory environment that appears more open to consolidation, while valuations and long-duration cash flows are firmly in focus.
Athora to acquire Pension Insurance Corporation for £5.7bn —
Apollo-backed Athora announced its £5.7 billion acquisition of Pension Insurance Corporation on 3 July, adding £50.9 billion of pension liabilities and 400,000 UK members to its pan-European retirement platform. The deal, praised by Chancellor Rachel Reeves as “a vote of confidence in Britain,” allows investors to exit at roughly 1.8 times book value. No immediate market reaction was recorded due to PIC’s unlisted status, though sector rivals slipped on competitive read-across.
KKR wins Spectris with £4.1bn bid —
The Spectris deal drama finally seems to reach a conclusion; Private-equity firm KKR secured board backing for its £4.1 billion all-cash offer for the FTSE-250 manufacturer, representing a 96 percent premium to the company’s undisturbed share price.
The deal, which topped a rival bid from Advent, highlights the persistent valuation gap in UK industrial mid-caps and is the largest take-private in the sector since 2021. Spectris shares surged 5.3 percent on the announcement.
Aviva completes Direct Line Group takeover for £3.7bn —
Aviva’s cash-and-share acquisition of Direct Line Group completed on 1 July, bringing around 20 million customers and more than 20 percent of UK motor and home insurance premiums under a single brand. The CMA cleared the deal without a Phase-2 investigation, reflecting a pro-scale stance from government. Aviva awarded £500 in free shares to 32,000 staff to support integration.
Santander UK to acquire TSB from Sabadell for up to £2.9bn —
As reported earlier this week, Santander UK signed an agreement to buy TSB from Sabadell for an initial £2.65 billion, with the potential to rise to £2.9 billion depending on performance adjustments.
The transaction, announced 1 July, brings five million customers and £69 billion of assets to Santander and is expected to close in early 2026. Investors welcomed the deal, with Sabadell shares gaining on the promise of a special dividend.
Primary Health Properties and Assura agree £1.79bn merger —
Assura’s board approved a £1.79 billion cash-and-stock offer from Primary Health Properties (PHP), combining more than 1,100 GP surgeries and primary-care assets in a £6 billion REIT. The tie-up is set to deliver enhanced funding and development capacity for the NHS estate, with investors weighing near-term dilution against long-term growth.
This week’s deals highlight continued demand from foreign buyers and private equity for UK-listed assets, particularly where inflation-linked, long-term cash flows are present. A regulator-friendly environment and persistent valuation gaps remain catalysts. Boards should expect further interest but will need to prepare for heightened scrutiny of integration and stakeholder management as M&A activity accelerates.
Stay ahead of the curve with Business Quarter’s weekly M&A briefing, a concise, authoritative roundup of the biggest deals, strategic plays, and market-moving partnerships.
Sign up now to get each week’s summary straight to your inbox.
Your message has been sent
