easyJet is set to become the newest UK-listed company to shift under foreign ownership after agreeing to Castlelake LP's most recent acquisition offer, a development that adds momentum to concerns about the health of London’s capital markets.
The budget carrier's acceptance of Castlelake's proposal follows a string of recent departures from the London Stock Exchange. Names cited as having attracted or fallen to foreign buyers include asset manager Schroders, insurer Beazley and testing and inspection group Intertek.
Critics say the pattern points to a broader structural problem. Nick Saunders, chief executive of online investment platform Webull UK, called the trend evidence that the UK is evolving into what he described as an "incubator economy." In his view, London helps companies grow to a certain scale but fails to provide the market environment that keeps global leaders listed domestically.
"The UK is turning into an incubator economy, from which stocks never graduate. A London listing nurtures companies until they reach a scale to be bought by foreign purchasers," Saunders said. "The UK is structurally equipped to start companies, but increasingly lacks the market infrastructure to retain global leader."
He framed easyJet's prospective takeover as "an admission of failure," drawing direct parallels with the acquisitions of Tate & Lyle and Intertek. Saunders argued that many UK firms are priced too cheaply on domestic markets and therefore may be worth more when broken up or integrated into foreign competitors.
Saunders also warned of broader consequences for the makeup of London’s market. As more dynamic firms disappear into overseas ownership, he said, the exchange risks becoming dominated by older, more traditional sectors - a shift that could make it less appealing to growth-focused investors.
"The capital markets are sick and in a spiral of decline; fewer listings lead to less domestic investor interest, lower valuations and, in turn, more takeovers," he added. "Long term, things look bleak."
This episode follows a pattern in which several high-profile UK-listed businesses have either attracted takeover interest from overseas buyers or have been acquired. The development has prompted fresh debate over whether the City of London retains the necessary market structure to support and hold on to companies as they scale.
Observers point to repeated transactions involving familiar British names as symptomatic rather than isolated events. The discussion centers on valuation levels for UK stocks, the composition of listed sectors and investor appetite for growth plays on the domestic exchange.