Skip to content

London bankers and lawyers earn over £1bn in takeover fees

financeSep 27, 202612419

London investment bankers, lawyers and accountants earned more than £1.2bn in fees from takeover deals this year, The Guardian reports, as UK stock market merger and acquisition value surged 175% to $132.9bn (£100bn) according to the London Stock Exchange. The boom was driven by private equity cash and acquisitive US buyers targeting undervalued British companies, and the largest City deal was EQT’s £10.6bn takeover of lab tester Intertek, a transaction expected to generate more than £370m in fees. JP Morgan advised on the most UK deals, 14 worth a combined $89.4bn (£67.6bn), and the leading law firm on these transactions was Slaughter and May. Partners at Linklaters and Clifford Chance received record average pay of about £2.5m and £2.3m respectively in the year to April, while Evercore’s senior dealmakers averaged around £2m and its top member took £16.2m. The surge in advisory income comes after the 2023 removal of a bonus cap that had limited payouts to two times salary, with some banks now permitting pay multiples far above that level. The industry is lobbying against higher taxes as lenders already face a 28% corporation tax rate on UK business, higher than the 25% standard rate, and critics warn the takeover spree raises questions about the future of the London stock market and growing inequality as households struggle with the cost of living.

1 source