£70bn Of City Firms Sold In 180 Days Thanks To Fall In Pound
The Daily Mail provides several recent examples of foreign buyers taking advantage of the cheap pound to gobble up UK firms. The pound fell sharply as a result of Britain’s referendum decision in June to leave the EU. It fell against the Euro but even more against the US dollar making UK companies roughly 17% cheaper than they otherwise would have been.
The Daily Mail quote Innovia’s acquisition by CCL Industries for £680m and Germany’s Hubert Burda Media £260m bid for Immediate Media, as evidence of firms taking advantage of the low pound.
The Daily Mail claims, in their usual sensationalist way, that this acquisition spree is putting pressure on the UK PM to prevent the ownership of critical companies falling into foreign hands.
Two more British companies look likely to fall into foreign hands – taking the total offered for UK businesses by overseas predators to around £70billion since the Brexit vote.
In a sign that foreign vultures are cashing in on the fall in the pound since the referendum on European Union membership in June, a string of takeover bids have been tabled for British operators.
Foreign firms are estimated to have saved £12billion by swooping on 17 different firms since June 24. £70bn of City firms sold in 180 days thanks to fall in the pound