A series of abandoned takeover bids by US companies have led to UK mergers and acquisitions hitting a record low in the second quarter of 2014.
Pfizer’s doomed AstraZeneca takeover, Destination Maternity’s failure to reach a Mothercare deal and Carillon’s scrapped Balfour Beatty acquisition have helped to drive down M&As activity taking place on British shores, according to City AM.
Just 73 mergers and acquisitions of companies worth more than £1m took place during April, May and June, of which 37 were overseas takeovers by UK firms and 19 involved UK businesses sold to foreign companies.
UK companies spent an average of £2.1bn on acquiring companies from abroad, whilst the average value of foreign acquisitions of UK firms was just £1.5bn. Domestic transactions also fell from £1.6bn in Q1 to £1.2bn in Q2, official figures have shown.
A total of US$4.88 trillion of debt has been sold so far this year reports Dealogic, close to the level of 2007 when US$4.91 trillion of bonds were issued over the same period.
The German industrial gases group has ended talks with its US peer on a potential union to establish a market leader.
The US exchange said it will introduce incentives from next month to make lower-volume exchange traded funds easier to buy and sell.
A survey of 1,000 merger and acquisition dealmakers finds that seven in 10 expect Brexit uncertainty to limit the number of deals.