Shares in FTSE 100-listed insurer Hiscox surged to record highs on Friday, following reports that Canada's Intact Financial Corp is exploring a potential takeover bid. This development places Hiscox among the latest London-listed companies to attract foreign interest, amidst a broader wave of overseas bids for British businesses this week.
Details of the Potential Takeover
According to a report by the Insurance Post, Intact Financial Corp, a provider of property and casualty insurance, is examining a possible acquisition of Hiscox, a prominent insurer operating within the Lloyd's of London market. Acquiring Hiscox would bolster Intact's commercial lines of business, the report noted, highlighting that Intact's chief executive has been actively seeking a large takeover target and is reportedly a 'fan' of Hiscox.
The news propelled Hiscox's shares up by as much as 15.3% on Friday, reaching an all-time high of £18.90 per share. Hiscox did not immediately respond to requests for comment.
Broader Trend of Foreign Interest
Hiscox's situation is part of a larger trend of heightened foreign interest in UK-listed companies, driven partly by cheaper valuations. Earlier this week, ingredients business Tate & Lyle confirmed it had received a £2.7bn takeover offer from its US rival Ingredion, sending shares of the FTSE 250 company up by 45%. If accepted, this deal would mark a significant geographic shift for Tate & Lyle, which traces its roots to a sugar refiner on Liverpool docks in 1859. The company had already sold its sugar arm to American Sugar Refining for £211m in 2010, while the rest of the business remained listed on the London stock market.
Additionally, FTSE 100 laboratory testing company Intertek announced on Wednesday that it was 'minded to recommend' a £10.6bn takeover offer from Swedish private equity group EQT. Intertek had previously rejected three of EQT's offers and initiated a strategic review last month, expressing confidence in its standalone strategy. However, after evaluating the latest offer and consulting with investors, the board indicated it would recommend the deal, which would then be subject to shareholder approval.
Intertek, which tests and certifies products before they go to market, traces its origins to the 19th century, combining three pioneering businesses in the UK, Canada, and the US. The company has faced mounting pressure from some investors, including Matt Peltz, son of activist investor Nelson Peltz, to accept the offer.
The surge in takeover activity underscores the attractiveness of UK-listed companies to foreign buyers, amid favourable valuations and strategic opportunities.
