London bankers and lawyers earn more than £1bn from record takeover wave

Investment bankers and lawyers in London have earned more than £1bn in fees this year from a wave of takeover activity, as a boom in mergers and acquisitions involving UK-listed companies fuels renewed criticism of high pay in the City of London.

The value of mergers and acquisitions involving companies listed on the London Stock Exchange has risen 175% in 2026, reaching $132.9bn (about £100bn), according to figures from the London Stock Exchange. The increase has been driven in large part by overseas buyers acquiring British companies at what has been described as a record pace, taking advantage of valuations that have made UK-listed firms attractive targets.

The scale of the fees generated by this activity has drawn criticism from those who argue that such rewards for a small group of finance and legal professionals sit uneasily alongside continued pressure on household budgets from the cost of living crisis. Critics have pointed to the gap between the sums earned advising on these deals and the financial strain facing many ordinary workers and consumers.

Supporters of the deal-making boom counter that heavy foreign investment in UK-listed companies reflects confidence in British business and can bring capital and expertise into the country, even as it raises broader questions about whether takeovers of domestic firms serve the wider economy in the long run.

The debate over the concentration of takeover fees comes as the UK's M&A market has become increasingly attractive to international acquirers, a trend that analysts expect to continue if valuations remain comparatively low relative to other major markets.