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Experian data shows drop in M&A activity but increase in deal value

Data from Experian shows the number of mergers and acquisitions and equity capital market deals fell during Q3 2010 for the UK and Europe, compared to Q3 2009. 

The total number of UK M&A and ECM transactions during Q3 2010 fell by 22.7 per cent compared to the same period last year – from 1,110 deals in Q3 2009 to 859 deals in Q3 2010.

However, the total value of Q3 2010 deals increased by 45.3 per cent on Q3 2009 – from GBP41.07bn to GBP59.67bn.

Compared to the previous quarter, the UK saw a 23 per cent decrease in volume, but a 4.8 per cent increase in value – from 1,115 deals worth GBP56.96bn to 859 deals worth GBP59.67bn.
 
Europe saw a 25.1 per cent decrease in the number of European M&A and ECM transactions announced during Q3 2010 with only 2,140 deals compared to 2,858 transactions in Q3 2009.

Value however increased by 4.16 per cent from GBP149.664bn in Q3 2009 to GBP155.883bn in Q3 2010.

The change from Q2 2010 revealed a 25 per cent fall from 2,853 transactions and a 3.4 per cent fall from the GBP161.358bn recorded.
 
Wendy Smith, business development manager at Experian Corpfin, says: “Although the UK returned to growth in the final quarter of 2009, the level of deal making in the UK since then has yet to reflect this.  Deals tend to slow down during Q3 of any year, so quarter on quarter figures show a seasonal decline. However, the year on year view reveals that while some regions held up a little better than others, there was still decline in the volume of M&A and ECM activity overall. However, the UK still fared a little better than Europe, where there was a slightly larger decline in the volume and the value of deals also fell.”

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