American companies are going bargain-hunting in the UK, and they're finding plenty of deals. This week alone, two major British names—easyJet and ITV—have agreed to be bought by US firms, adding to a growing list of UK companies snapped up by American buyers. For everyday investors, this trend raises important questions about the future of the London Stock Exchange and where to put your money.
EasyJet Finally Says Yes
After five attempts, low-cost airline easyJet has agreed in principle to a takeover bid from American private credit firm Castlelake. The deal values the UK carrier at $7.3 billion. Private credit firms like Castlelake are investment firms that lend money to companies or buy them outright, often using a mix of debt and equity. This is a significant move for easyJet, which has been a staple of the London market for years.
ITV Joins the American Fold
Meanwhile, Sky—owned by US cable and media giant Comcast—has agreed to buy ITV's television business for about $2.1 billion. The deal is expected to complete in the second half of 2027. This would put two of the UK's best-known broadcasters under an American parent, as Comcast already owns Sky. The move is part of a broader strategy: Comcast said in late June that it plans to spin off its content arm NBCUniversal into a separate listed company, hoping each business can thrive on its own in the streaming-first landscape. By acquiring ITV, Sky strengthens its content library, which can then be used to attract subscribers to its streaming services.
A Growing Haul of British Companies
These deals are just the latest trophies in a growing haul of British companies picked off by American buyers. Earlier this week, the European Commission greenlit fund manager Nuveen's $13 billion deal to acquire asset manager Schroders. Drug giant Merck bought Verona Pharma for around $9 billion last year, and International Paper snapped up packaging firm DS Smith for just under $10 billion in 2024. It's not only US companies: Swedish private equity company EQT is buying assurance firm Intertek in a $12.7 billion deal closing next year. But the trend is clear—American firms see value in UK assets, partly due to the weaker pound and lower valuations compared to US stocks.
What This Means for the London Stock Exchange
All that dealmaking comes at a cost: the number of companies listed on the London Stock Exchange is shrinking. Fewer listings mean less liquidity, reduced investment opportunities, and not a lot of reasons for global capital to land there. For everyday investors, this can make it harder to buy and sell shares at fair prices, and may reduce the diversity of companies available in UK-focused funds. If the LSE wants to stay relevant, it needs to start attracting fresh firms—fast. This is a concern for anyone with money in UK stocks or index funds.
Why Companies Are Buying Instead of Building
Companies can grow profits either organically (by selling more products) or by acquiring other businesses. In a tough economic environment, buying a rival can be faster and cheaper than building from scratch. For US firms, UK companies often look cheap right now, thanks to a weaker pound and lower valuations. That's why we're seeing a wave of takeovers. For investors, this can be a double-edged sword: if you own shares in a company that gets bought, you might get a nice premium. But if you're a long-term holder of UK stocks, you're watching the pool of available investments shrink.
What to Watch Next
Investors should keep an eye on whether more US firms follow suit. The trend could accelerate if the pound stays weak and UK valuations remain low. Also watch for how the London Stock Exchange responds—will it try to attract new listings from tech or green energy companies? For now, the message is clear: American bargain hunters are feasting on UK companies, and the London market is paying the price.
