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Latest M&A Statistics for Q1 2020

The UK Office for National Statistics have just released their latest data for Mergers and Acquisitions involving UK companies for Q1 2020, during the period January to March 2020.

HEADLINES

  • During Q1 (Jan-Mar) 2020, estimates for the value of both domestic and outward mergers and acquisitions (M&A) involving UK companies increased compared with Q4 (Oct-Dec) 2019, while inward M&A saw a notable decrease over the same period.
  • Domestic M&A (UK companies acquiring other UK companies) was worth £3.2 billion in Q1 2020; an increase of £0.6 billion compared with Q4 (Oct-Dec) 2019 (£2.6 billion) and an increase of £1.1 billion on the value for Q1 2019 (£2.1 billion).
  • Outward M&A (UK companies acquiring foreign companies abroad) during Q1 2020 was valued at £3.4 billion, a small increase compared with the value of £3.0 billion in Q4 2019, but a notable decrease of £4.5 billion on the value recorded during Q1 2019 (£7.9 billion).
  • The value of inward M&A (foreign companies abroad acquiring UK companies) in Q1 2020 was £4.6 billion, the lowest value recorded since Q4 2017 (£3.6 billion); a notable decrease of £11.1 billion compared with Q4 2019 (£15.7 billion) and a £2.5 billion decrease on the value recorded during Q1 2019 (£7.1 billion).

Domestic mergers and acquisitions – January to March 2020

The value of domestic mergers and acquisitions (M&A) was £3.2 billion in Q1 (Jan-Mar) 2020, £0.6 billion higher than in Q4 (Oct-Dec) 2019 (£2.6 billion). The value was also £1.1 billion higher than Q1 2019 (£2.1 billion).

One successful domestic acquisition in Q1 2020, was Bovis Homes Group Plc of the UK, which acquired Galliford Try Partnerships Ltd.

Other notable domestic acquisitions – each valued at £100 million or more – that took place in Quarter 1 2020 included OVO Energy of the UK acquired SSE Energy Services Group Ltd and Northgate Plc acquired Redde Plc.

Value of quarterly domestic M&A transactions involving UK companies

There were 212 completed domestic acquisitions involving a change in majority share ownership in Q1 2020, a decrease of 17 on the number recorded in the previous quarter (229) and 32 fewer than Q1 2019 (244).

Number of quarterly domestic M&A transactions involving UK companies

Outward mergers and acquisitions – January to March 2020

The value of mergers and acquisitions (M&A) of foreign companies made by UK companies during Q1 (Jan-Mar) 2020 recorded a small increase when compared with Q4 (Oct-Dec) 2019. However, compared with the same quarter a year ago, the value of outward M&A recorded in Q1 2020 was lower.

The value of outward M&A involving a change in majority share ownership in Q1 2020 was £3.4 billion, a £0.4 billion increase on the previous quarter (£3.0 billion) but a £4.5 billion decrease on the Q1 2019 value of £7.9 billion.

Notable outward acquisitions each valued at £100 million or more that completed during Q1 2020 were:

Estimates for the value of outward mergers and acquisitions between Quarter 1 (Jan to Mar) 2016 and Quarter 1 (Jan to Mar) 2020 ranged from £1.7 billion to £51.8 billion

Value of outward M&A transactions involving UK companies by quarter

There were 78 completed outward M&A deals during Q1 2020, an increase of 20 acquisitions compared with Quarter 4 2019 (58) but 10 fewer when compared with Q1 2019 (88). Estimates for the number of outward mergers and acquisitions between Quarter 1 (Jan to Mar) 2016 and Quarter 1 (Jan to Mar) 2020 ranged from 22 to 88 transactions

Number of quarterly outward M&A transactions involving UK companies

During Q1 2020 there were 15 outward disposals involving a change of majority share ownership, worth a total of £0.9 billion, similar to the numbers previously recorded during both Q1 and Q4 2019.

One sizeable outward disposal which completed during Quarter 1 2020 was DS Smith Plc which sold its Plastics Division in the USA.

Inward mergers and acquisitions – January to March 2020

In Q1 2020 the value of inward M&A (£4.6 billion) was the lowest value recorded since Q4 2017 (£3.6 billion) and a decrease of £11.1 billion when compared with Q4 2019 (£15.7 billion). Between Q2 (Apr-June) 2019 and Q1 2020, the value of completed inward M&A decreased by £14.1 billion. This is largely explained by the reporting of fewer high value acquisitions of UK companies made by foreign companies.

Notable inward acquisitions which took place in Q1 2020 included:

Estimates for the value of inward mergers and acquisitions between Q1 (Jan-Mar) 2016 and Q1 (Jan-Mar) 2020 ranged from £3.6 billion to £85.2 billion

Number of quarterly domestic M&A transactions involving UK companies

There were 112 completed inward acquisitions in Q1 2020, a decrease of 37 transactions on the number (149) reported in the previous quarter and 22 fewer when compared with Q1 2019 (134).

The estimates for the number of inward M&A between Q1 (Jan-Mar) 2016 and Q1 (Jan-Mar) 2020 ranged from 44 to 176 transactions There were 24 inward disposals of UK companies involving a change of majority share ownership during Q1 2020. These were worth £0.3 billion, a notable decrease of £3.7 billion on the value reported during Q4 2019 (£4.0 billion).

Number of quarterly inward M&A transactions involving UK companies

The above data was extracted from the following Office of National Statistics webpage.