UK a ‘standout’ destination for deals despite economic uncertainty
The UK remains a “standout” destination for dealmaking among European peers despite wider economic uncertainty, new data shows.
Global law firm White & Case LLP’s M&A Explorer found the UK was the top destination for mergers and acquisitions in Europe in the first six months of the year.
Some 1,207 transactions worth a total of $118.6bn (£87.7bn) were completed over the period, a year-on-year increase of more than a half (52 per cent).
A slight lull over the first quarter was ultimately offset by a “significant pick-up” later in the year, with 668 deals worth $45.3bn announced in the second quarter.
Dealmakers are also optimistic about further M&A activity for the remainder of 2025, with falling interest rates and a more stable political and regulatory landscape, according to White & Case.
“The UK is benefitting from stable and falling interest rates, significant levels of appetite across the private capital spectrum, a stable political and regulatory landscape, attractive valuations and being one of the relatively few countries to have agreed a trade deal with the US administration,” Patrick Sarch, head of UK public M&A at White & Case said.
“These factors are driving strong deal flow, and there is good reason to be optimistic about sustained increases in transactional activity for the remainder of the year.”
The findings will be a boost for the Labour government, which has faced fierce backlash from business over the tax hikes unveiled during its first year in power. Firms are also grappling with increasing geopolitical uncertainty around the world.
Deliveroo deal hits the headlines
Blockbuster deals included the US food delivery giant Doordash’s £2.9bn bid for UK rival Deliveroo and the £4.7bn merger of the Italian engineering firm Saipem with the UK’s Subsea7.
Lucy Bullock, a London-based private equity partner, said: “Whilst one cannot overlook the current challenges and heightened geopolitical uncertainty, certain sectors including TMT, financial services and business services continue to be hotspots for UK M&A activity.
“With both PE and corporate buyers tracking UK targets, many M&A advisers are understandably upbeat about the outlook.”