Upward trend in UK mergers and acquisitions

There has been an upward trend in merger and acquisition (M&A) activity in the UK, as 2018 was the third highest year for worldwide M&A deals.

Inward M&A, when foreign companies purchase UK companies, increased by 70 per cent last year to £18.4 billion in the second quarter of 2019.

UK firms have reported a rise in M&A activity in the last 18 months, with experts stating that the increase in activity is being driven by a renewed focus on innovation, great diversification and more optimism about mid to long-term prospects across various sectors.

The UK’s offshore energy sector is one industry that has seen growth, with experts indicating that a number of significant energy deals represent positive news for the industry, with the supply chain building and looking to the future.

The sales of GEV Group to Bridges Fund Management and Signum Technology to Trelleborg represented significant deals in the sector, which is now on an upward trajectory.

Mergers and acquisitions have become increasingly popular, with more than 800,000 transactions worldwide between 2000 and 2018.

According to the Thomson Financial Institute for Mergers, Acquisitions and Alliances (IMAA), last year saw in excess of 52,000 transactions announced, worth approximately £3.25 trillion worldwide.

Nigel Fry, General Practice Partner at Milsted Langdon, said: “Merger and acquisition activity has shown an upward trend worldwide, but particularly in the UK. The opportunity to invest in innovative, upwardly mobile companies has proven attractive to foreign investors, particularly with favourable trading conditions due to the value of the pound.

“For advice on matters relating to mergers and acquisitions, contact our expert team today.”

Posted in Blog.