In Q1 2012, UK M&A activity saw 229 deals totalling GBP16bn, a 33% decrease compared to Q1 2011 (GBP23.9bn) but up 9.6% compared to Q4 2011 (GBP14.6bn), according to MergerMarket. The UK made up 9.6% of all European M&A by value this quarter, the lowest Q1 since Q1 2004 (8.4%).
Only six large-cap deals (GBP500m+) were announced this quarter. The largest transaction of the quarter was the GBP3.2bn acquisition of the UK based broadcast software provider NDS Group by Cisco Systems, from News Corp and Permira.
With GBP4.8bn-worth of deals totalling 22 transactions, Technology was the most active sector in Q1 2012. The Consumer sector also fared well with GBP2.4bn-worth of deals and 38 transactions.
Foreign M&A investment into the UK totalled GBP12.3bn and represented 76.9% of all UK M&A activity in Q1 2012, the highest proportion since Q4 2006 (79.3%). Cross-border outbound activity amounted to GBP5.9bn, a drop of 66.2% compared to the same period last year (GBP17.6bn).
Having advised on four of the top five UK deals in Q1 2012, Goldman Sachs maintained its lead in the financial adviser league table by deal value, with 14 transactions worth GBP13.5bn.
Clifford Chance topped the legal adviser league table by deal value with GBP8.3bn-worth of deals and a total of 16 transactions, gaining 18 places on Q1 2011. Linklaters gained five spots to reach first position in the legal adviser league tables by deal count with 18 transactions.
