UK Companies Not Investing Abroad

The number of UK companies valued at over £1m involved in acquisitions and disposals fell from 154 transactions in Q1 2012 to 60 in Q1 2013, a decrease of 94 or 61%. Domestic UK M & As were valued at £1bn in Q1. The value increased by £0.3bn but the number of transactions fell from 61 to 24.

Foreign companies acquisitions in the UK increased by £1.2bn from £2bn to £3.2bn in Q1 2013. The number of transactions fell by 21 from 35 to 14.

Figures for UK companies investing abroad show outward M&A activity at its lowest since records began in 1987. The IMF's latest financial stability report however shows global financial conditions are improving. Confidence in markets is improving and continued improvements are required to prevent the return of financial risks.

Outward Investment Highest Since 2007

The ONS has released data regarding mergers, acquisitions and disposals involving UK companies with values of over £1m covering the first quarter of 2011. The value of acquisitions abroad by UK companies was the highest outward investment since the fourth quarter of 2007 increasing to £18.3bn from £3.8bn in the last quarter of 2010. The investments invloved 44 acquisitions in the first quarter compared to 66 in the last quarter.

The value of acquisitions in the UK by foreign companies fell from £7bn to £6.4bn over the quarter. Expenditure by UK companies on acquisitions of UK companies fell to £1.2bn from £6.3bn in the last quarter of last year.

High Point In UK Overseas Acquisition Expenditure

UK companies' expenditure on acquisitions abroad reached their highest point since the first quarter of 2009 in the second quarter of 2010 according to the latest statistical bulletin from the ONS. The figure of £1.4bn is still well below earlier levels. Acquisitions in the UK by foreign companies fell to the lowest level since the second quarter of 2009 from £14.8bn to £2.3bn. Acquisitions of UK companies by UK companies in the UK increased from £1.3bn in Q1 to £1.9bn in Q2 2010.

There were 22 overseas acquisitions with values of over £1m by UK companies. There were 7 disposals of overseas companies for a total of £2.3bn in Q2 2010. Acquisitions of UK companies with values over £1m by foreign companies totalled 30. There were 10 disposals of UK companies by foreign companies with a total value of £1.3bn. In the UK, there were 66 acquisitions of companies with values over £1m by UK companies. They included 47 acquisitions of independent companies and 19 transactions involving subsidiaries.