Q3 2024 Inward M&A Activity Trends: Analysis
The Office for National Statistics (ONS) recently released data showing a mixed picture for inward mergers and acquisitions (M&A) activity in the UK during the third quarter of 2024. While the total value of inward M&A transactions reached £7.8 billion, which is a £1.1 billion increase from the previous quarter and £3.0 billion higher compared to the same period last year, the number of transactions involving a change in majority share ownership slightly decreased compared to the previous quarter.
The ONS reported 179 completed inward M&A deals, a small drop from 187 in the second quarter of 2024 but an increase from 149 in the third quarter of 2023. Experts at national law firm Irwin Mitchell see reasons to be positive, noting that cross-border mergers and acquisitions are vital for Foreign Direct Investment (FDI) and serve as a common way for organizations to enter new markets, leading to additional investments. This rise in the value of inward M&A activity indicates growing confidence from international investors in the UK market, highlighting their trust in the country’s economic stability and potential.
In contrast, outward M&A transactions involving UK companies remained relatively consistent between the second and third quarters of 2024. There were 66 outward acquisitions with a change in majority share ownership in the third quarter of 2024, 15 fewer than the previous quarter and 19 fewer than the same period last year.
Irwin Mitchell’s recent report on FDI identified the top 50 most attractive cities in the UK for investment, highlighting the growing importance of freeports and investment zones in attracting investments outside of London.
Overall, the latest ONS data presents a nuanced view of M&A activity in the UK, with both positive and challenging trends. As the new government’s Industrial Plan for Growth takes effect, there is optimism that the confidence in the UK market will continue to strengthen among international investors.
