Low Level Of M&A Activity Involving UK Companies

Foreign companies spent less on acquisitions in the UK in Q2 2009 in the lowest number of transactions since Q2 1987. There were 14 such transactions compared with 25 in Q1 2009. The fall from £12.3bn to £0.4bn is also the lowest since Q2 1987. UK companies also spent less on acquisitions abroad with expenditure decreasing from £3.7bn in 17 transactions in Q1 to £2.4bn in Q2 2009 in 25 transactions. UK to UK acquisition transactions decreased from 88 to 41 with a value of £0.7bn in Q2 2009 the lowest since Q3 1992. Included in these latest statistics from the ONS are the acquisition of a controlling stake in the Vodacom Group by Vodaphone Group for £1.6bn and the disposal of Cadbury by Schweppes Australia for a reported -£0.6bn. UK to UK transactions included the acquisition of Aricom Plc by Peter Hambro Mining Plc.