“Lingering political uncertainty continues to affect UK deal making as the value of domestic mergers and acquisitions since the country’s vote to leave the European Union plunged 62 percent to a 30 year-low,” says Lucille Jones, Analyst, Deals Intelligence at Thomson Reuters.
A dearth of larger deals is partly to blame – not a single domestic M&A deal over the value of US$1 billion has been announced since the Brexit vote. The last time this occurred during the same period was in 2001.
Foreign purchases of British firms during the post-Brexit period have also dropped to total US$55.2 billion, a fall of 69 percent from the same period last year in which Anheuser-Busch Inbev announced a US$110.3 billion bid for SABMiller Plc.
The data show spending by British companies on foreign deals has jumped by 59 percent however, to US$88.5 billion. This is more than any comparable period since 2007 but does include British American Tobacco’s US$57.8 billion offer for U.S. cigarette maker Reynolds American Inc. This is the largest UK outbound deal post-Brexit vote and accounts for 65 percent of outbound M&A, by value, during this period.
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