Fact Service September 2016

Issue 36

Decline in UK mergers and takeovers


The second quarter of 2016 saw notable declines in the number and value of successful mergers and acquisitions (M&A) involving UK companies saw notable declines when compared the first quarter of the year.


Domestic acquisitions — acquisition of UK companies by other UK companies — during the second quarter saw 47 completed acquisitions worth £5.9 billion in the second quarter, down 50% from the number reported in the first quarter when there were 95 acquisitions worth £11.8 billion.


The one high-profile acquisition which accounted for the majority of the total value of domestic acquisitions was the £3.5 billion takeover of Cable and Wireless Communications by TV and cable company Liberty Global.


There were 20 completed inward M&A transactions — foreign companies acquiring UK companies — valued at £6.3 billion in the latest quarter, down 61% from 52 successful transactions valued at £50.3 billion seen during the first quarter.


The biggest deal was by the US manufacturing group Ball Corporation of the USA which acquired packing group Rexam for £4.5 billion.


Outward M&A saw 16 UK companies acquire foreign companies abroad in deals totalling £1.7 billion, compared with 35 deals valued at £6.1 billion during the first quarter, a decline of 54%.


One of three notable transactions was the £139 million takeover of US generic drugs group Putney by Dechra Pharmaceuticals.


www.ons.gov.uk/businessindustryandtrade/changestobusiness/mergersandacquisitions/bulletins/mergersandacquisitionsinvolvingukcompanies/aprtojun2016