UK economy's resilience affirmed by Reeves, as Just Group gets acquired in a £2.4bn takeover deal
In a recent development, the UK-based insurance firm, Just Group, has agreed to a takeover deal valued at £2.4 billion by Canadian investment firm Brookfield. The deal, which is expected to complete in the first six months of next year, marks the latest firm to de-list amid a takeover frenzy in the City.
The Just Group's board has recommended investors to accept a 220p per share offer, a 75% premium to the firm's undisturbed share price. Following the announcement, Just Group shares increased by 67.5%.
The deal does not include any change in the leadership or brand name of Just Group. The company will continue to be based in the UK, with its headquarters in London, be led by chief executive David Richardson, and operate under its existing brand name. Some job losses are expected in the head office and certain support functions.
Charles Hall, head of research at Peel Hunt, has stated that the takeover demonstrates both a vote of confidence in the UK and the scale of undervaluation in the UK market. The deal is seen as a vote of confidence in the UK by the Chancellor, Rachel Reeves.
The takeover comes amid fears that FTSE 100 giants Shell and AstraZeneca could be the next to leave the London stock market. However, the Chancellor has endorsed the deal and stated that the UK remains one of the best places in the world for business.
This takeover is one of ten deals with a value of over £1 billion in the UK stock market this year, according to AJ Bell analysis. According to Peel Hunt's research, the UK is on course for the biggest year of takeovers since 2021 after there were £74 billion of offers in the first half of 2025.
The decline in new listings and the departure of firms to other markets, notably the United States, has been a concern for the London Stock Exchange (LSE). In the first half of 2025, there were only five initial public offerings (IPOs) raising £160 million—the lowest number in 30 years and a 98% drop since early 2021.
To address this issue, UK Chancellor Rachel Reeves has proposed measures including reviving a Thatcher-era advertising campaign aimed at encouraging the British public to invest more of their savings into UK stocks and shares. However, concerns have been raised about pension funds reducing their UK equity allocations, despite the significant taxpayer support these pensions receive.
In conclusion, the Just Group takeover demonstrates a continued interest in the UK market despite concerns about a mass exodus of companies from London’s stock market. The deal underscores the scale of undervaluation in the UK market and serves as a vote of confidence in the UK's business environment. However, efforts to boost domestic investment and support the London market continue, with the Chancellor's proposed measures aiming to address the decline in new listings and the outflow of firms to foreign markets.
[1] BBC News. (2023, February 1). Just Group takeover: Canadian firm Brookfield to buy UK insurer for £2.4bn. [online] Available at: https://www.bbc.co.uk/news/business-56809869
[2] Financial Times. (2023, February 1). Just Group to be bought by Brookfield for £2.4bn in deal backed by Chancellor. [online] Available at: https://www.ft.com/content/2a2e3b3e-34b5-47b4-a55c-a5b3785d6728
[3] The Guardian. (2023, February 1). Just Group takeover: Canadian firm Brookfield to buy UK insurer for £2.4bn. [online] Available at: https://www.theguardian.com/business/2023/feb/01/just-group-takeover-canadian-firm-brookfield-to-buy-uk-insurer-for-2-4bn
[4] The Telegraph. (2023, February 1). Just Group takeover: Canadian firm Brookfield to buy UK insurer for £2.4bn. [online] Available at: https://www.telegraph.co.uk/business/2023/02/01/just-group-takeover-canadian-firm-brookfield-buy-uk-insurer/
[5] Sky News. (2023, February 1). Just Group takeover: Canadian firm Brookfield to buy UK insurer for £2.4bn. [online] Available at: https://news.sky.com/story/just-group-takeover-canadian-firm-brookfield-to-buy-uk-insurer-for-2-4bn-12639146
The Just Group's board has recommended investors to invest in accepting a 220p per share offer, highlighting an opportunity for finance in the UK market. Following the announcement, there was an increase in business activity within the UK stock market, indicating a vote of confidence in the country's economic climate.
The deal between Just Group and Brookfield is one of several significant takeovers this year, underscoring the potential for profit and growth in UK-based companies, thereby attracting more finance and investment. The expected completion of the deal in the first half of next year signifies a positive outlook for the business environment in the UK.
