(Bloomberg) -- High profile British companies are potential takeover targets in 2023, with low equity valuations and a weak pound making them attractive to bidders, according to asset manager M&G Plc.

“We would not be shocked to see a big name in the oil and gas or mining sectors subject to a bid, with companies like BP Plc trading at a significant discount to their US peers,” Michael Stiasny, head of equities for M&G, said in research note. BP did not immediately respond to a request for comment. 

London-listed stocks remain cheap even after outperforming during the past 12 months, with the MSCI UK Index trading near a 35% discount to global peers — well below its 15-year average of 18%. BP shares, which soared almost 30% over the past year as gas prices rose, trade at a big discount to those of Exxon Mobil Corp., M&G noted.

M&G’s comments were reported earlier by the Times of London newspaper. The firm has about £349 billion ($432 billion) in assets under management and administration, according to its half-year results published in August.

--With assistance from Michael Msika.

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