OVERSEAS buyers lured by a plunge in the pound are looking to snare British companies on the cheap, ensuring a steady flow of deals since Britain voted to leave the European Union and defying expectations of a merger and acquisition drought.

    Almost 60 transactions totalling US$34.5 billion have been struck by foreign companies for British firms since June 23, according to Thomson Reuters data, compared with 79 deals amounting to US$4.3 billion in the month leading up to the vote.

    This activity, dominated by Japanese group SoftBank’s US$32 billion swoop for chip designer ARM Holdings, has defied warnings that dealmaking could dry up for a period if Britain backed Brexit, given uncertainty surrounding risks to the economy and access to the EU single market.

    The list of British takeovers could grow after the summer, according to bankers who say they are working on possible bids on behalf of foreign companies interested in U.K. targets.

    The SoftBank deal was hailed by the government as a sign of U.K. economic resilience, prompting new Prime Minister Theresa May to declare the country “open for business.”

    But merger and acquisition bankers said some of the post-vote takeovers had more to do with the relatively low valuations of British companies given current exchange rates, rather than being driven by confidence in the British economy.

    Sterling has taken the brunt of market concern since the Brexit vote June 23, falling to a 31-year low in the aftermath of the vote.

    “Clearly this is a buying opportunity,” said Ben Ward, head of U.K. corporate at law firm Herbert Smith Freehills. “People with strong currencies — dollar, renminbi, yen — will no doubt be interested in acquiring sound sterling-denominated assets.”

    There have been dozens of other deals since the referendum.

    South African retailer Steinhoff agreed to pay nearly 600 million pounds (US$787.46 million) for British-based discount chain Poundland on July 13, for example.

    It came a day after AMC Entertainment Holdings, an American company majority-owned by a Chinese conglomerate, said it would buy London-based Odeon & UCI Cinemas Group to create the world’s largest cinema operator, in a deal valued at about 921 million pounds.

    On Thursday, China’s Fosun International snapped up English football club Wolverhampton Wanderers.

    Some merger and acquisition bankers in London say they are working closely with British companies who feel vulnerable to hostile bids from cash-rich foreign buyers, in sectors including aerospace, housebuilding and retail. Others say they are trying to win advisory mandates at firms viewed as potential takeover targets.

    “We’re helping our U.K. clients think through the right fundamental value of their business in the current environment and shoring them up to prevent unwanted opportunistic situations where an international rival tries to buy them on the cheap,” said Hernan Cristerna, co-head of global merger and acquisition at JPMorgan. (SD-Agencies)