M&A activity involving UK companies was flat in the third quarter of 2013, with the same level of transactions taking place as the previous quarter.
A total of 116 domestic and cross-border transactions took place in Q3 2013, according to the Office for National Statistics (ONS), the same as in Q2 2013. This was also just a slight increase on the number of transactions recorded in the third quarter of 2012, which was 112.
Overall, the value of domestic acquisitions fell from £2.1bn in Q2 2013 to £0.8bn in Q3 2013.
“This may be an indication that although the UK economy grew in Q3 2013, UK companies are continuing to delay their investment and expansion decisions until the economic recovery has been sustained over several periods,” the ONS said.
Meanwhile, the number of inward acquisitions made by foreign companies in the third quarter increased by 39% from Q2 2013. There were 46 acquisitions of UK companies in Q3 2013, up from 33 in the previous quarter (Q2 2013). The US continues to be a prime investor in the UK.
Sally Percy is editor of The Treasurer