Financial Services M&A Activity Surges by 26% in 2024
Merger and acquisition activity in the financial services industry saw a significant increase of 26% in 2024, according to analysis by EY. UK banks, insurers, and asset managers publicly disclosed 380 M&A deals in 2024, marking the highest annual volume since 2012 and a jump from 272 deals in 2023.
The total disclosed deal value also rose, from £12.5bn in 2023 to £20.2bn in 2024. Specifically within the wealth and asset management sector, the number of deals surged from 107 in 2023 to 122 in 2024. The total publicly disclosed deal value in this sector rose from £2.1bn in 2023 to £9.3bn in 2024.
Damian Hourquebie, UK financial services strategy and transactions leader at EY, commented on the findings, noting that the economic recovery and increased market confidence contributed to the rise in M&A activity. While some macroeconomic uncertainty and geopolitical tensions may pose challenges in the future, the expectation is that M&A activity will continue to grow in 2025 as confidence improves and firms move forward with transformation plans.
In addition, the analysis revealed that the number of non-UK firms acquiring UK firms increased from 54 in 2023 to 74 in 2024. However, the total disclosed value of these deals declined from £6.7bn in 2023 to £3.9bn in 2024. On the other hand, the number of UK firms acquiring overseas businesses also rose, from 65 deals in 2023 to 97 deals in 2024, with an overall deal value remaining steady at £1.7bn.
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