Post Brexit UK domestic M&A plunged to a 30 year low. Thomson Reuters Deals Intelligence explores the key facts and figures.
In September, Reuters reported Britain’s shock vote to leave the European Union chilled dealmaking activity involving British companies to the lowest level in at least two decades as bosses grapple with what Brexit will cost, according to Thomson Reuters data. Even before the vote, Brexit jitters had taken a toll on M&A activity. Confidence was and remains low.
Lucille Jones, Head of EMEA Deals Intelligence for Thomson Reuters says: “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,” explaining that the death 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.
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Key Facts & Figures
- UK domestic M&A transactions announced since the Brexit vote total US$6.1 billion, down 62% from the same period in 2015. UK Domestic M&A activity is at its lowest level for this 20-week period since 1986.
- Outbound deals, involving a UK buyer and a target outside of the UK, total US$88.5 billion since Brexit, up 59% from the same period last year, and more than any comparable period since 2007. British American Tobacco’s US$57.8 billion offer for U.S. cigarette maker Reynolds American Inc is the largest UK outbound deal post-Brexit. The deal accounts for 65% of outbound M&A, by value, during this period.
- UK Inbound M&A totals US$55.2 billion during the post-Brexit period, down 69% from the same period last year in which Anheuser-Busch Inbev announced a US$110.3 billion bid for SABMiller Plc. The 2016 total has only been exceeded once (in 2015) since 2009.
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