-By ArdorComm News Network
December 4, 2024
Foreign firms invested £7.8 billion in acquiring UK businesses during the latest quarter, reflecting a £1.1 billion increase compared to the previous period, according to the Office for National Statistics (ONS). This rise in inward mergers and acquisitions (M&A) occurred despite an overall reduction in the number of deals within the UK.
Key transactions during the quarter included Carlsberg’s £206 million buyout of its brewing joint venture with Marston’s and Quanex Building Products’ £788 million acquisition of FTSE 250-listed doors and windows specialist Tyman. These high-value deals highlight growing international interest in UK companies.
However, the ONS report revealed a decline in outward M&A activities, where UK companies purchased overseas firms. These deals amounted to £4 billion, a £200 million drop from the previous quarter. Among the notable outward investments was AstraZeneca’s acquisition of Amolyt Pharma for $1.05 billion (£830 million), aimed at expanding its portfolio in endocrine disease treatments.
Domestic M&A activity also saw a decrease, with UK firms acquiring other UK businesses for a total of £2.1 billion, down from £3 billion in the prior quarter.
Overall, the quarter recorded 436 M&A deals, a 10% decline compared to the second quarter of 2024. While the value of foreign investments surged, the reduction in the number of transactions signals a potential slowdown in broader M&A activity within the UK.
The latest figures underline a trend of increasing foreign ownership in UK businesses, even as domestic and outbound deal-making activity faces headwinds. The data reflects shifting priorities in the global investment landscape amidst economic uncertainties.
Source: minutehack
Photo Credit: minutehack