Canadian manager takes over struggling London-based Just Group
The London Stock Exchange (LSE) has witnessed another significant foreign takeover, with Canadian asset manager Brookfield Wealth Solutions (BWS) acquiring UK-listed company Just Group. The deal, valued at £2.4bn, marks BWS's first venture into the UK pension insurance market.
According to BWS's chief, Sachan Shah, the company is committed to providing ironclad retirement security products, a commitment that will be extended to Just Group's policyholders. The acquisition is expected to support Just's growth in the UK and build on its commitment to financial certainty and excellent service.
The enormous premium in the deal, as stated by Just's board, represents "fair value" to the group's investors and provides them with an immediate payday for the long-term strategy in place. Just's shareholders will receive 220p per share, a roughly 75% premium to its average share price over the past two months.
The acquisition is a significant blow to the LSE, which is facing challenges in attracting and retaining UK companies. The departure of Just Group to foreign ownership is a trend that has been observed, with several large transactions involving foreign buyers in recent years.
Charles Hall, head of research at Peel Hunt, expressed concern about the rate of departures from the London market and the need for structural change to ensure the UK remains a leading equity market. He also noted that the undervaluation of the UK market is of interest to overseas companies and private equity, as evidenced by the high premium in the Just Group takeover.
The acquisition of Just Group by BWS is not an isolated incident. In 2021, the London Stock Exchange Group plc acquired Quantile Group Limited, and multiple high-value sales and acquisitions advised by Evercore between 2024 and 2025 have involved foreign buyers. Cross-border investment activity has also been seen in deals involving Swedish entities and UK-adjacent companies.
The implications of these foreign acquisitions for the UK capital markets include increased foreign direct investment inflows, potential concentration of ownership in foreign hands, possible regulatory scrutiny, and enhancement of market integration with European and global capital markets.
Meanwhile, another foreign player, fintech darling Wise, has received the overwhelming support of shareholders to shift its primary listing to New York. Astrazeneca, the largest company listed in London, is also rumoured to be considering a similar move to shore up political support in its biggest market.
As foreign investment continues to shape the UK market, BWS's chief, Sachan Shah, hailed the deal as a sign of the firm's ambitions in the UK, earmarking it as an integral region due to its status as one of the world's preeminent pensions markets. The acquisition of Just Group by BWS is a testament to the attractiveness of the UK market to foreign investors, despite the challenges faced by the LSE.
The acquisition of Just Group by Brookfield Wealth Solutions (BWS) signifies the finance industry's active interest in the UK business markets, particularly the pension insurance market. This deal also demonstrates the potential for foreign investors, such as BWS, to gain from the undervalued UK market.
The UK capital markets are witnessing increased foreign direct investment inflows, which could lead to potential concentration of ownership in foreign hands, possible regulatory scrutiny, and enhanced market integration with European and global capital markets.
