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