MORE UK companies are set to be taken over by foreign firms this year, it is claimed.
Financial and business adviser Grant Thornton said an increasing number of privately-owned businesses in China and India were looking for acquisitions in this country following an increase in such investment last year.
Mergers and acquisition statistics already show a sharp increase in Indian takeovers in the UK during 2010 with Indian companies announcing 24 deals targeting UK assets valued at £571m against nine deals worth £52.28m in 2009.
Ian Marwood, (inset) partner and head of the Yorkshire corporate finance team at Grant Thornton, said last year’s increase was a sign of things to come.
He said: “There has been a staggering rise in Indian takeovers of UK targets and acquisitive Indian companies will be further encouraged by reports that Jaguar Land Rover is making a strong recovery under the stewardship of Tata Motors.
“We have also seen this in Yorkshire with the takeover of Davy Markham in Sheffield last year and UK companies are particularly attractive to investors.
“In January alone, Grant Thornton has been approached by five acquisitive companies from India asking if we could find suitable targets in the UK.”
In the case of China, direct foreign investment by firms in that country leapt by 36% in 2010, according to figures from the British Embassy in Beijing.
Said Mr Marwood: “Leeds would be of particular interest in China – with the city having secured a deal for the Chinese track and field team train here ahead of the 2012 Olympics”.
