UPDATE 1-UK takeovers hit 14-year high in first seven months of 2021

(Adds detail)

LONDON, Aug 3 (Reuters) - Takeovers of British companies hit
a 14-year high by value in the first seven months of 2021,
Refinitiv data shows, with no sign the buying spree is slowing
after U.S. companies targeted a leading supermarket and defence
groups.

The total value of UK deals in the seven months was $198
billion, a more than threefold increase on the same period last
year, which included the onset of the COVID-19 pandemic.

Deals involving a British target totalled $34.9 billion in
July, 5% less than June but more than seven times the value in
July 2020.

The increase has coincided with the British economy's faster
than expected rebound from the coronavirus crisis and reduced
Brexit uncertainty since leaving the European Union.

British companies have been relatively cheap compared with
U.S rivals when measured on a price-to-earnings ratio, with the
FTSE 100 trading at 15.6 against 26.9 for the S&P 500, Refinitiv
data shows. The FTSE 250 index of mid-cap companies is trading
at 9.9 times.

One of those FTSE 250 constituents could be about to leave
after defence and aerospace company Meggitt agreed to a
6.3 billion pound ($8.77 billion) takeover by U.S. rival
Parker-Hannifin on Monday.

Britain's fourth-largest supermarket group Morrisons
has also agreed to be bought for the same price by the
Softbank-owned Fortress group and could yet receive a
counter-bid from CD&R.

"The UK takeover spree continues to move at pace, with yet
another FTSE 250 stock receiving a bid," said AJ Bell investment
director Russ Mould after Meggitt recommended the takeover.

"UK stocks have long been considered cheap and this year's
M&A spree shows that overseas investors have finally got enough
confidence to pounce on opportunities after years of showing
little interest in the market."

One deal that completed in the first half of 2021, boosting
M&A numbers, was the $11 billion purchase by National Grid
of Western Power Distribution, England's largest
electricity distribution business.
($1 = 0.7184 pounds)

(Reporting by Paul Sandle and Abhinav Ramnarayan
Editing by Kate Holton and David Goodman)