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UK M&A activity hits $282bn, a 58% increase over the first nine months of last year

30 September 2015

So far this year US $282bn of M&A deals (outbound, inbound and domestic) involving UK companies have been announced, according to analysis from Deloitte, which is 58% higher than $178bn for the first nine months of 2014. This is due largely to the dramatic increase of inbound investment, which hit $174bn, up 2.7 times from the $64bn for the same period last year. In fact, seven of the top 10 deals involving UK companies this year were inbound M&A deals.

Iain Macmillan, head of global M&A at Deloitte, commented: “Despite global economic uncertainty, the UK remains a preferred destination for cross-border inbound M&A. UK companies are attracting investments from all over, including the US, Japan, China and Europe. Many of these are multi-billion dollar deals, which is a vote of confidence on the strength of UK businesses.”

The Europe-UK deal corridor remains strong, recording a 15% increase in deal volumes (both inbound and outbound). For the first nine months, energy & utilities, consumer business and financial services have led the way.

However, by contrast, domestic M&A deal volumes are down 4% year on year. Iain Macmillan concluded: ”Despite the flurry of activity at the top end of the market, we are yet to see the sentiment filter through to the domestic mid-markets where the volumes remain muted. However, there are many factors that bode well, credit conditions are improving and there is debt available, including from alternative lenders. If the recovery continues, we expect a trickle down to reach the mid-market.”

End

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

Will Black
Deloitte LLP
+44 (0) 20 7007 8242
+44 (0) 78 2511 3222
wiblack@deloitte.co.uk

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