AUS
NZ
UK
CA
USA
IND
Highlights:
- UK M&A activity reaches $137.1 billion: The UK ranks third globally, with a 54% year-on-year increase in deal value.
- Foreign buyers drive deals: Overseas firms contributed 72% of total deal value, marking the highest share in three years.
- UK outbound M&A also rises: UK companies have spent $52.1 billion on international deals, a 15% increase from 2023.
Merger and acquisition (M&A) activity targeting UK firms has surged this year, placing the country as the third-most sought-after market globally. According to LSEG Deals Intelligence, the value of M&A deals involving UK companies reached $137.1 billion (£102.4 billion) in the first nine months of 2024, representing a 54% increase compared to the same period last year.
The majority of these transactions were driven by foreign buyers, who accounted for 72% of the total value, marking the highest share in three years. This rise in cross-border deals comes amid easing concerns around UK political stability and positive economic signals, which have improved the outlook for deal-making.
Lucille Jones, a senior manager at LSEG Deals Intelligence, highlighted that the uptick in UK M&A activity reflects a renewed appetite for acquisitions, potentially enticing more firms to enter the market. This trend is further illustrated by high-profile bids for companies like Rightmove PLC (LSE:RMV), DS Smith PLC (LSE:SMDS), and Darktrace PLC (LSE:DARK), which have collectively seen billions of dollars in offers this year.
Foreign Buyers Driving UK Deals
Foreign entities have been the driving force behind the UK’s M&A resurgence, contributing significantly to the spike in transaction volumes. This year’s activity represents a 79% increase, with deals involving UK targets making up 6% of the global M&A market, trailing only behind the US and China.
The increased interest in UK firms is linked to reduced political uncertainties and favorable monetary policy signals. This environment has paved the way for large-scale bids, including the latest offer for Rightmove by Rupert Murdoch’s REA Group. Additionally, DS Smith and cybersecurity firm Darktrace have attracted substantial attention from international acquirers.
Outbound UK M&A Activity Rises
UK-based firms have also been actively pursuing M&A opportunities abroad, with a total of $52.1 billion spent on overseas transactions in 2024 so far. This represents a 15% rise compared to last year, indicating that UK firms are looking to expand their footprint globally as the domestic market stabilizes.
