Citi UK CEO Says M&A Is 'On Fire' as Large-Cap Corporates Simplify and Overseas Buyers Target British Assets
Citi UK CEO Tiina Lee told CNBC on Thursday that UK M&A is currently "on fire," driven by two parallel forces: large-cap companies stripping back to core operations and overseas buyers hunting for cash-generative British businesses at attractive valuations. Speaking from Canary Wharf, Lee pointed to what she described as the ongoing "UK plc simplification" trend — a sustained push by major listed groups to divest non-core divisions and focus on their highest-return segments. This portfolio rationalisation dynamic is generating a steady pipeline of both sell-side mandates for corporates and buy-side work for acquirers, including cross-border buyers attracted by sterling-denominated assets. Lee contrasted the strength of the M&A market with a still-quieter IPO market, noting that dealmaking is currently the primary engine of activity in UK capital markets. The contrast is pointed: while the London Stock Exchange has yet to recover its listings momentum, the advisory and transactional side of UK corporate finance is running at pace. The comments reflect a broader structural moment in which FTSE 100 and FTSE 250 companies are under pressure from activist shareholders and capital allocation reviews to shed underperforming units, creating a supply of quality assets and sustaining demand for M&A legal and banking advisory work across London.
Why this matters
A senior banker's public characterisation of UK M&A as "on fire" is significant market intelligence for transactional practices: it confirms that sell-side and buy-side corporate M&A mandates are actively flowing through London advisory teams. The "simplification" narrative — corporates divesting non-core units — activates public M&A, carve-out, and regulatory clearance work simultaneously. Overseas buyers targeting UK assets raise cross-border due diligence, foreign direct investment screening (where applicable), and English-law SPA (sale and purchase agreement) structuring demands. The IPO market remaining subdued means capital markets practices are more dependent on M&A-linked equity raises, such as rights issues or vendor placements, than on new listings. For City firms, this environment rewards deep corporate and financing capability rather than pure ECM (equity capital markets) bench strength.
On the Ground
On a large-cap UK corporate divestiture, a trainee would manage the CP (conditions precedent) checklist tracking regulatory clearances and board approvals, draft and verify schedules to the SPA, and coordinate Companies House filings on completion. Completion bible preparation and disclosure letter verification would also fall within trainee scope.
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