UK Election: M&A Trends from Thomson Reuters

With the UK election taking place this week; Thomson Reuters takes a look at UK M&A activity trends around election periods and since the Brexit vote.

Recent History Shows Number of UK M&A Deals Increase After UK General Elections

More M&A deals involving a UK target were announced immediately after the last two UK general elections than immediately before. In 2015, 4% more deals were announced during the 90 day period after the election than in the 90 days before, and in 2010 there was an 8% increase.

An increase in the number of UK Outbound M&A deals was seen after the last 3 UK general elections. Twenty-three percent more deals were announced in the 90 day period after the 2005 election than during the 90 days immediately before. In 2010 there was a 25% uptick and in 2015 there were 47% more deals.

UK M&A Deals Increased after Last 2 Changes of Government

The number of both UK target and UK outbound M&A deals increased after the change of government in both 1997 and in 2010.

Post-Brexit Vote Period M&A at Second Highest Level in Last 9 Years

Post-Brexit vote M&A with UK involvement totals $450.9 billion, down less than 1% from the previous June 24th – June 5th period (in which Anheuser-Busch Inbev announced a US$110.6 billion bid for SABMiller Plc). Post-vote period UK involvement M&A is at its second highest level in 9 years. While UK inbound M&A has fallen 31%, UK outbound M&A has increased 59% from the same period commencing June 24th 2015.

2017 UK Involvement M&A Doubles From This Time Last Year

Announced M&A with any UK involvement totals US$163.5 billion so far during 2017, more than double the US$80.2 billion announced during the same period in 2016, and the second highest year-to-date total in the last 9 years.

Source: Thomson Reuters

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