Brexit? What Brexit? M&A deal values between the UK and rest of Europe double in first half of 2017
The value of deals between the UK and the rest of Europe more than doubled year-on-year in the first six months of 2017.
Deals worth $32.5bn (£25.2bn) were announced in the first half of the year, up from $14.6bn in the same period of 2016.
French and German companies, in particular, have been highly acquisitive in the UK, according to an analysis by Deloitte.
“Since the EU referendum, M&A between the UK and the rest of Europe has remained strong,” said Paul Lupton, head of UK advisory at Deloitte. “This is clearly a vote of confidence in the region’s economic prospects, but also suggests that a devalued sterling is making UK assets more attractive.”
In the first two quarters of the year, Deloitte tracked 247 cases of UK firms agreeing deals worth $17.7bn on the continent, and 188 deals worth $14.7bn into the UK. Despite the doubling of value, the total number of deals has fallen, from 452 to 435.
However, it is worth noting M&A activity may have been held up due to uncertainty ahead of the vote in the first six months of 2016. In the first six months of 2015, 428 deals worth $98.5bn were announced, according to Deloitte figures.
Lupton added: “Fundamental uncertainty arising from Brexit and the recent General Election would normally adversely affect M&A volumes.
“However, low interest rates and the weight of capital available in the market is providing a very strong counterpoint to the uncertainty.
“Looking ahead, our latest CFO survey indicates the appetite for expansion through M&A rose in the second quarter of this year.”
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