UK Target M&A Accounts for 4% of Worldwide Total, Lowest Percentage on Record; UK IB Fees Fall 22%
Deal making in the United Kingdom totals $57.6 billion so far this year, accounting for just 4% of overall worldwide M&A, the lowest percentage for UK targets since records began in 1980 and the slowest year-to-date period since 2013. Inbound cross-border M&A in the United Kingdom totals $43.8 billion for year-to-date 2016, a 74% decline compared to a year ago. Despite the steep year-over-year decline for inbound UK purchases, nine of the top 10 UK deals this year involve a non-UK buyer, including Deutsche Boerse’s $13.9 billion bid for the London Stock Exchange Group, a $6.1 billion offer for Markit Ltd from IHS and Sysco Corp’s $3.1 billion bid for Brake Group. Financials and Technology deals account for 54% of year-to-date UK M&A activity, up from 9% a year ago. Domestic M&A activity between UK companies totals $13.5 billion during year-to-date 2016, which accounts for 17% of UK Involvement M&A this year, up from a record low of 9% during year-to-date 2015.
Investment banking fees paid by UK companies total $1.9 billion so far during 2016, a 22% decline compared to a year ago, and the slowest year-to-date for UK IB fees since 2012. Capital Markets fees in the United Kingdom have fallen 37% compared to last year, marking the slowest year-to-date period since 2003. UK M&A fees, bolstered by the completion of Royal Dutch Shell’s acquisition of BG Group, have increased 7% compared to last year.
Europe M&A activity totals $295.0 billion, down 24% compared to YTD 2015
Healthcare M&A hits $145.4 billion this year, down 21% compared to 2015
US Follow-On activity totals $62.1 billion, down 43% compared to a year ago
Financials ECM totals $39.7 billion for YTD 2016, down 65% from a year ago
Global High Yield debt hits $150.8 billion, down 35% compared to last year