08 December 2016
M&A activity tumbles after Brexit vote
Merger and acquisition (M&A) activity tumbled in the UK between July and September, as businesses came to terms with the consequences of the Brexit vote.
Some 140 successful deals worth £1 million or more occurred over the quarter, official figures indicate, coming in at a combined £34 billion.
That marks a significant fall on the 278 seen in the previous three months.
The Office for National Statistics, which released the figures, said M&A activity was notably down among overseas players. The number of deals for UK companies involving foreign firms dropped by 42% to 41 in the third quarter.
In terms of domestic M&A deals, the number fell to 72 from 152 in the previous three months.
The results come after the vote to leave the European Union on June 23. The Bank of England is among the institutions which have warned over the impact the 'leave' result might have on corporate spending.