Overseas investors shun the UK

geoffky

The number of UK companies taken over by foreign groups has dropped to a 22-year low, according to numbers released today, while merger activity among UK firms has also dropped markedly.
In a sign that overseas groups are shunning the UK following the major economic downturn, which has hit both this country and many Western peers, figures from the Office of National Statistics (ONS) showed that overseas companies spent just £400 million in the second quarter on acquisitions in the UK, down from £12.3 billion in the first quarter.
The figure was the lowest recorded since the second quarter of 1987, as was the number of actual deals, which dropped to 14.
UK firms are also shying away from corporate deals. The ONS said that spending by UK companies on acquisitions domestically fell to £700 million, down from £8.2 billion in the first quarter and the lowest level since the third quarter of 1992.
The number of domestic deals in the UK fell to 41 in the three months to end of June, its lowest level since records began in 1969.
This was in contrast to the number of takeovers by UK firms of overseas groups, which actually climbed from 17 to 25 quarter on quarter.
Jeremy Batstone-Carr, head of private client equity research at Charles Stanley Stockbrokers, said the figures hinted at caution among corporates in terms of the outlook for the global economy.
He said: 'Most companies have spent the last 12 months addressing their cost-base and trying to maintain profitability, and there is little doubt that corporate coffers have the cash (to carry out more acquisitions) if they so wished.


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Dan:_4

Geoff, your getting desprate.

Are you still going to buy a home in May 2010 as planned?

purch

The number of UK companies taken over by foreign groups has dropped to a 22-year low

Is that good or bad news ??

A few years ago the doomers would have pointed to the high number of UK companies being bought out by 'johnny foreigner' as proof positive that we were on the road to ruin. :eek:

Now the same losers are pointing to how few are being taken over, as proof of the same thing. :rolleyes:

How pathetic !!!!

bendix

Unbelievable. Mergers & Acquisitions activity down in a recession shock!

Congratulations, geoff, for stating the bleeding obvious.

geoffky

dan ..looks that way..i have just filled my daughters senior school application and if i don't move i don't get her in the school we want...good job i can afford to pay cash as the interest rate rises will become crippling for many.

dan look at the figures above..they are astounding... down from £12billion to £400million in 3 months...... they are horrific figures..

geoffky

bendix wrote: »

Unbelievable. Mergers & Acquisitions activity down in a recession shock!

Congratulations, geoff, for stating the bleeding obvious.

look closer at the figures on three months..

bendix

But geoff, they are the same the world over. There has been a massive slump in M&A activity all around the world. It's not UK specific.

Seriously, what is the point of the thread?

purch

what is the point of the thread?

Very large number suddenly becomes small number OR very small number suddenly becomes large number. :eek:

I havn't a clue what it all means, but it must be bad !!!! :rolleyes:

geoffky

seriously bendix whats the point of your replying ..if you don't like a thread....don't answer it it really is that simple..

bendix

geoffky wrote: »

look closer at the figures on three months..

I work for a law firm. We use all the relevant directories and leaguetables published by mergermarket, thomsons reuters etc. We're fully aware of the slowdown in M&A activity.

Again, I repeat, what's the point you are trying to make?

For the record, those really in the know - law firms, accountants, investment banks - have been saying for months that most noticeable thing of the last few months is that companies have been cutting costs and conducting rights issues, largely to give themselves cash reserves for when the market starts to pick up again.

My own firm is currently working on two very large public M&A deals, the largest of the last three years.

bendix

geoffky wrote: »

seriously bendix whats the point of your replying ..if you don't like a thread....don't answer it it really is that simple..

Because I'm baffled at what point you're trying to prove. Economic activity slumps in a recession - oh my god. Does it really?