UK M&A activity dropped 26% in the second quarter
The number of mergers and acquisitions (M&A) dropped 26% over the second quarter of 2014, with domestic transactions remaining at a historic low.
Some 73 acquisitions involving UK companies took place during the April-June period this year, according to the Office for National Statistics (ONS).
These comprised 37 domestic transactions, 19 deals of foreign companies taking over British firms, and 17 UK takeovers of overseas businesses.
This was down 26% from the 98 M&A deals recorded in the first quarter, which was made up of 39 domestic transactions, 19 inward transactions and 34 outward transactions.
Meanwhile, M&A transactions in the second quarter of 2013 totalled 114, 36% higher than this year.
M&A transactions were defined as deals that resulted in a change of ultimate control of the target company.
"The numbers and value of M&A activity are prone to quarter-on-quarter movement as these data relate to specific ‘one time’ only transactions. Therefore it can be more appropriate to analyse trends over time," the ONS said.
"The total number of mergers and acquisitions involving UK companies remained historically subdued in Q2 2014, particularly when compared with the 20-year period prior to the 2008-09 economic downturn."