Value of UK merger and acquisition deals jumps to highest level for two years
This was partly driven by more deals by international investors and companies to snap up UK-based firms over the first quarter of the year.
The Office for National Statistics said a number of particularly large agreements helped increase the provisional value of all inward and outward M&A (merger and acquisition) deals to their highest level since late 2022.
However, the number of domestic and cross-border deals including changes of ownership dipped to 395 for the three months to March, from 497 in the previous quarter.
Statisticians highlighted that this included a reduction in activity in February, as some firms were cautious in the face of wider economic uncertainty.
In March, Bank of England officials said in a report for the quarter: 'Mergers and acquisitions activity shows some signs of improvement, but growth is constrained by caution among buyers and sellers.
'Restructuring and insolvency activity remains slightly higher on a year ago.'
The latest data showed that deals by foreign firms to acquire UK companies were worth £19.2 billion over the quarter, jumping from £15.2 billion in the previous period.
This included the £3.3 billion deal by Danish brewing giant Carlsberg to buy J2O maker Britvic.
The jump in the value of deals was also supported by the £5.8 billion takeover of paper and packaging firm DS Smith by US rival International Paper.
Elsewhere, the value of outward M&A, where UK firms bought foreign companies, rose to £9.4 billion from £1.8 billion in the previous quarter.
Recent deals included London-listed mining giant Rio Tinto's £5 billion buyout of Arcadium Lithium.
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