The Chancellor has insisted that the takeover of yet another London-listed company is a vote of confidence in the UK.
Rachel Reeves spoke out after Canadian investment firm Brookfield swooped on UK insurer Just Group in a £2.4billion deal.
The FTSE 250 group is the latest firm to say it will de-list amid a takeover frenzy that has swept through the City.
Just Group shares rocketed 67.5 per cent, or 85p, to 211p yesterday.
The deal comes amid a mass exodus from London’s stock market as companies are bought, or quit for other centres such as New York.
There are fears that FTSE 100 giants Shell and AstraZeneca could be the next to leave in what would be a hammer blow for the City.
Applause: Chancellor Rachel Reeves (pictured) has backed Canadian investment firm Brookfield’s takeover of FTSE 250 insurer Just Group
Despite the concerns, Reeves backed the latest deal, saying that it shows ‘the UK remains one of the best places in the world for business’.
She added: ‘Brookfield are a major investor, and this commitment demonstrates strong faith in the UK economy.’
The offer is the tenth in the UK stock market with a value of more than £1billion this year, according to AJ Bell analysis.
Research from broker Peel Hunt last month showed the UK is on course for the biggest year of takeovers since 2021 after there were £74billion of offers in the first half of 2025.
Peel Hunt’s head of research Charles Hall agreed that Brookfield’s swoop ‘is a vote of confidence in the UK’ but said ‘two things can be true at once’.
‘It also demonstrates the scale of undervaluation in the UK market and the concern about the UK equity market losing so many of its small and mid-cap companies,’ Hall said.
‘We urgently need proactive measures to ensure that UK capital is invested in UK companies and to reinvigorate the IPO market.’
Tory Shadow Business Secretary Andrew Griffith said: ‘This Chancellor has created the rare double of both listed companies and talented individuals leaving.
‘The UK has fabulous potential and great businesses but only a radical change of direction will unlock it.’
Just Group’s board has recommended that investors accept the 220p per share offer, which is a 75 per cent premium to the firm’s undisturbed share price.
The company will continue to have its headquarters in London, still be led by chief executive David Richardson and operate under its existing brand name following the deal, which is expected to complete in the first six months of next year.
Some job losses are expected in the head office and ‘certain support functions’.
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