M&A activity between the UK and the rest of Europe doubles a year after Referendum vote
10 July 2017
The value of M&A deals between the UK and the rest of Europe has more than doubled, from $14,629 million, in the first half of 2016, up to US$32,458 million so far this year. There were 8 deals where the deal value was between $1bn and $4bn. Deal volumes have remained broadly steady, with 452 deals in the first half of 2016 compared to 435 this year, according to analysis from Deloitte.
Paul Lupton, head of UK Advisory at Deloitte, comments:
“Since the EU Referendum, M&A between the UK and the rest of Europe has remained strong. This is clearly a vote of confidence in the region’s economic prospects, but also suggests that a devalued sterling is making UK assets more attractive.
“We are seeing the most deals in Consumer Business and TMT, as companies look to upgrade technology and increase efficiency. French and German companies have been the main acquirers of UK companies so far this year by volume of deals.
“Fundamental uncertainty arising from Brexit and the recent general election would normally adversely affect M&A volumes. However, low interest rates and the weight of capital available in the market is providing a very strong counterpoint to the uncertainty. Looking ahead, our latest CFO survey indicates the appetite for expansion through M&A rose in the second quarter of the year.”
Notes to editors
Deloitte’s CFO Survey - 122 CFOs of FTSE 350 and other large private companies participated in the Q2 2017 CFO Survey. The combined market capitalisation of the 92 listed companies who participated is £509bn, approximately 20% of the UK quoted equity market.
The survey ran from 12th to 27th June, capturing the immediate business reaction to the 2017 General Election result.
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is a subsidiary of Deloitte NWE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.
The information contained in this press release is correct at the time of going to press.
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