Chris Hughes: Undervalued UK Companies Should Resist Selling Out

UK companies should focus on improving operations, not just selling out, to unlock their true value and become global champions, says Chris Hughes. The UK government should support these firms to protect domestic industries and ensure British ownership.

Trim Correspondents
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Chris Hughes: Undervalued UK Companies Should Resist Selling Out

Chris Hughes: Undervalued UK Companies Should Resist Selling Out

In a recent Bloomberg Opinion article, Chris Hughes argues that undervalued UK companies should no longer resort to selling themselves as their primary option. Hughes suggests that these companies should instead focus on improving their operations and competitiveness to unlock their true value.

According to Hughes, the UK's undervalued companies should aim to become global champions rather than prioritizing short-term gains from mergers and acquisitions. He believes that this approach would be better for the companies, their employees, and the broader UK economy in the long run.

Hughes also argues that the UK government should take steps to support these undervalued companies, such as providing tax incentives or other forms of assistance, to help them become more competitive and avoid being acquired by foreign buyers. The article emphasizes the need for the UK to protect its domestic industries and ensure that valuable companies remain under British ownership and control.

Why this matters: Hughes' argument highlights the importance of cultivating a strong and competitive domestic business environment in the UK. By encouraging undervalued companies to focus on growth and innovation rather than selling out, the UK can build a more resilient and prosperous economy for the future.

The potential London listing of Greek industrials conglomerate Mytilineos, which has operations across 30 countries, comes as a boost for London's embattled public markets. The city has struggled to attract major listings and seen an exodus of companies shifting their primary listings away from the UK. Mytilineos says the potential London listing is part of a "comprehensive strategic review" and aims to offer enhanced liquidity to its investors, while remaining committed to its contribution to the Greek economy and retaining its Athens listing.

Key Takeaways

  • UK firms should focus on improving operations, not just selling out.
  • UK govt should support undervalued firms to become globally competitive.
  • Protecting domestic industries is crucial for UK's economic resilience.
  • Potential London listing of Greek firm Mytilineos seen as boost for UK markets.
  • UK has struggled to attract major listings, facing an exodus of companies.