London Stock Exchange faces $100bn exodus as three more companies agree to takeovers
Bodycote, Gamma Communications, and Capricorn join a growing list of firms exiting the London public markets via private equity and corporate acquisitions.
Quick Look
Three London-listed firms—Bodycote, Gamma Communications, and Capricorn—have agreed to takeovers, pushing the total value of companies leaving the London Stock Exchange this year past $100bn amid a wave of private equity and corporate acquisitions.
AI-generated summary
Why It Matters
The London Stock Exchange has seen a significant number of companies delist this year through acquisitions by private equity and other corporate entities.
Three more London-listed companies are set to be taken over as the value of deals removing firms from the capital’s under-pressure stock market passes $100bn (£74bn) so far this year.
On Tuesday, Bodycote, the FTSE 250 industrials group that has been listed on the London Stock Exchange since 1972, agreed a £1.84bn takeover by the US private equity group Veritas.
The Macclesfield-based company, which offers services including heat treatment for manufacturing, metal joining and protective metallic coatings, had been the subject of a bidding war against the rival European buyout group CVC.
Veritas said Bodycote’s prospects would be better served by being taken out of public markets.
“As a private company under Veritas’ ownership, Bodycote will benefit from enhanced flexibility and long-term perspective to support continued investment in the business and pursue targeted organic and inorganic growth opportunities,” the US group said.
Meanwhile, the telecoms company Gamma Communications recommended a £1.1bn offer from the UK private equity company Epiris, days after confirming it was in possible takeover talks with the European buyout company Waterland.
Epiris first indicated its interest in a potential takeover in June. On Tuesday it said: “The additional flexibility that comes from a private company environment will enable Gamma to invest further and focus on sustainably improving the growth of its business over the long term.”
Separately, the Scottish energy company Capricorn is set to end 38 years on the FTSE all-share after striking a deal with the Norwegian rival DNO for $396m. Capricorn had recommended an offer from Genel Energy, but the company switched its recommendation after receiving a higher offer from DNO.
The takeovers put further pressure on the LSE, which has been hit by an exodus of companies so far this year in deals totalling almost $110bn, according to data compiled by Bloomberg.
The flurry of dealmaking includes easyJet’s £5.7bn takeover by the US private equity company Apollo, the warehouse landlord Segro’s £14bn takeover by the US rival Prologis, and the sale of ITV’s broadcasting and streaming business to the Sky owner, Comcast, for £1.6bn.
Earlier this year the historic British asset management group Schroders agreed a £9.9bn takeover by a US investor.
What to Watch
AI outlook — possibilities, not facts
Bodycote will transition to private ownership under Veritas.
Likely · Within months
Open Questions
- Will the LSE implement new measures to retain listed companies?
- How will the loss of these companies affect the FTSE indices?
