Value of UK merger and acquisition deals soars

Merger and acquisitions involving UK firms increased in value across the third quarter, according to the latest official figures.

Data from the Office for National Statistics shows that there were 163 domestic and cross-border acquisitions and disposals been July and September, worth a total of £86.4 billion.

That compares to 241 transactions that took place in the second quarter of this year, which were worth a total of £33.2 billion.

A key factor behind the third quarter increase were outward mergers and acquisitions, whereby UK companies acquired assets overseas.

Some 33 outward acquisitions in the quarter totaled £51.1 billion, representing the highest quarterly figure for more than 17 years since £129.4 billion of acquisitions took place in the second quarter of 2000.

Foreign firms also acquired UK operations in the third quarter, with 52 inward mergers and acquisitions totaling £16.8 billion, a jump of £3.9 billion on the previous quarter.

Some £5.6 billion worth of domestic acquisitions took place in the UK in the third quarter, spread across 58 successful deals.

This represents the highest quarterly value since the second quarter in 2016 when 130 acquisitions were valued at £6.8 billion.

One large transaction in the third quarter is thought to be behind the rise in value noted in that period.

The ONS data only takes into account successfully completed mergers and acquisitions worth £1 million or more, whereby control of the target company changes.

Mergers and acquisitions often form a key part of business growth and survival and attaining sound advice is crucial to ensuring success.

If you need to dispose of assets or acquire a business in difficulty or facing insolvency, advice on mergers and acquisitions is available.

From providing assistance on finding the right targets for your business to analysing strategies or negotiations, you should be able to find the support you need.

By Phil Smith


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