Value of inward UK M&A deals falls by £15.8bn
The value of mergers and acquisitions (M&A) of UK companies by foreign businesses fell by £15.8bn between April and June this year.
The drop, from £22.3bn to £6.5bn, reflected the absence of high-value transactions that were seen in previous periods, the Office for National Statistics (ONS) said.
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However, the number of transactions was up by 106 to 182, and included the takeover of British manufacturer Fenner by French-headquartered tyre company Michelin, and the sale of book chain Waterstones to US hedge fund Elliott Management Corporation.
"There seems little doubt that the uncertainty around Brexit is prompting some international acquirers to pause for thought," Rob Donaldson, head of corporate finance at audit tax and consulting firm RSM, said.
"We've seen a number of buyers decline opportunities that, in all other respects, are strategically sensible acquisitions.
"This is undoubtedly due to uncertainty as to the shape of the UK's future trading relationship with the EU and beyond."
M&A deals of foreign firms by UK companies fell to the lowest level in almost five years, from £2.5bn between January and March this year to £1.9bn in the second quarter.
Notable deals included Aviva's purchase of life insurer Friends First, and JD Sport's acquisition of US athletic clothing brand The Finish Line.
Domestic M&A activity was also down 33 per cent to £4bn in the second quarter.
Transactions are only counted for ONS statistics when the deal is legally completed, if it has a value of at least £1m and if it results in a change of the control of the target company.
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