UK targeted mergers and acquisitions saw 485 deals valued at GBP40.6bn in the first half of 2013, down 16.5 per cent and 10.9 per cent by volume and value, respectively, from H1 2012 when they were 581 deals valued at GBP45.6bn, according to data released by MergerMarket.
A decline in deal value from Q1 to Q2 was responsible for the overall H1 drop. Q2 deals valued at GBP15.1bn were 40.6 per cent down from Q1 2013 (GBP25.5bn) and 46.7 per cent down from Q2 2012 (GBP28.4bn).
The UK however, became more active in the search for companies outside of its borders as it rebounded from a Q1 low of GBP3.7bn, the lowest quarterly value since Q4 2009 (GBP3.4bn). Q2’s 106 deals were over five times the Q1 value GBP23.7bn and also 119.4 per cent above Q2 2012 (GBP10.8bn) – this resulted in the highest quarterly outbound value since Q3 2010 (GBP41.2bn).
Inbound M&A experienced a 42.6 per cent decrease in Q2 2013 (GBP11.9bn) compared to Q1 2013 (GBP20.7bn) and 42.5 per cent decline from Q2 last year (GBP20.7bn). This total comes with just 86 announced deals, the lowest figure since Q4 2009 which saw 81 deals.
Telecommunications was the most active sector by value in H1 2013 following the Virgin Media mega-deal. With GBP16.3bn worth of deals the sector accounted for 40.1 per cent of total M&A value, replacing the leading sector in H1 2012 which was energy, mining and utilities sector.
Deals over GBP5bn represented 55.4 per cent of UK total M&A value (GBP40.6bn) which accounted for only 15 per cent of the total value in H1 2012 (GBP6.8bn, GBP46.5bn) and was the second H1 increase in a row.
