UK deals market records fall but ‘still outshines Europe’

THE number of merger and acquisition transactions in Yorkshire so far this year fell, compared to the same period last year, but the region appears to have performed better in the way of debt-funded deals compared to other areas of the country.
By The Newsroom
Published 8th Oct 2012, 07:00 BST

The overall number of merger, acquisition, flotation, rights issue and placement transactions across the UK announced so far this year dropped, from 3,527 transactions in the first nine months of 2011 to 3,188 in the same time period in 2012. In Yorkshire the figure fell from 260 to 240.

The total value of UK deals was also down from £187.9bn to £172.9bn, while in Yorkshire it decreased from £2.2bn to £1bn, according to data from information services firm Experian.

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Wendy Driver, business development manager at Experian UK&I, said: “Although transaction volumes in the UK have declined over the first three quarters of the year, the deal landscape has proved remarkably resilient when compared with certain other European markets.

“Particularly encouraging is the increase in the number of debt-funded deals taking place. With the majority of these falling into the small to mid market value range, it is a positive sign towards a potential upturn in deal flow as we move into the last quarter of the year.”

Experian said that the total volume of UK deals funded by bank loans was up by 3.4 per cent in the first nine months of 2012 compared with the same period of 2011. It said the strongest performance came from Greater London, North West of England and Yorkshire. The latter recorded 29 such deals valued at £31m in the first nine months of 2012. The UK-wide respective figures were 212 and £31bn. Experian was not able to provide figures for debt-funded deals for 2011.

More than a quarter of deals funded through bank loans came from the professional and business activities sector. This was followed by materials and equipment wholesale, finance auxiliary services and computer activities.

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The only areas in the UK to see the overall number of transactions rise year-on-year were the South West, Northern Ireland and Scotland.

The UK M&A market has outperformed its European counterparts so far in 2012, said Experian. About 47.2 per cent of all European transactions included a UK element – either acquiring, merging with or being bought by a UK based company – up from 43 per cent in the year to date, 2011.

Related topics:YorkshireEuropeNorthern IrelandScotland