UK mergers and acquisitions fall during 2010 according to Experian analysis

UK mergers and acquisitions fall during 2010, according to Experian analysis

Nottingham, 06 January 2011 — Experian®, the global information services company, today revealed that the number of mergers and acquisitions during Q4 2010 fell by 20.6 per cent compared to Q4 2009, bringing the volume of deals for the whole of 2010 to 4,240 – 4.5 per cent fewer than the total number of deals in 2009.

Experian’s latest mergers and acquisitions (M&A) and equity capital market (ECM - flotation, rights issue and placements) data has also revealed that the value of deals during Q4 2010 fell – down 17.7 per cent compared to Q4 2009.  The total value of deals for the year saw a decline of 16.8 per cent compared to 2009.

UK highlights

·         During Q4 2010, the UK saw a 12.5 per cent decrease in the number of UK M&A and ECM transactions announced, compared to Q3 2010 (from 1,050 deals to 919 deals), and a 18.43 per cent fall on the value of transactions to £52.912 billion.

·         Compared to Q4 2009, the UK saw a 20.6 per cent fall in volume, from 1,158 and a 17.7 per cent fall in value, from £64.287billion.

·         The most improved region in the UK was East Anglia with a percentage increase of 31.4per cent in deals since last quarter.

·         The worst performing region was Wales where deal activity dropped by 44.1 per cent.

Europe and the rest of the world

·         Europe saw a 20.01 per cent decrease in European M&A and ECM transactions announced during Q4 2010 with only 2,103 deals compared to 2,629 transactions in Q3 2010 and a 11.44 per cent fall on the €208.429 billion recorded in Q3 2010 to €184.586 billion worth of transactions announced in Europe in Q4 2010.

·         Compared to Q4 2009, Europe saw the volume of deals fall by 28.3 per cent from 2,932 to 2,103 deals.  The value of deals fell from €232.499 billion in Q4 2009 to €184.586 billion – down 20.6 per cent.

·         The majority of the UK’s deals during Q4 2010 were with the USA, followed by Australia.

·         For 2010 as a whole, Europe’s deal volumes saw a 6.68 per cent decline, whilst deal values dropped by 10.7 per cent compared to 2009.

·         The final year results for the USA revealed a decrease in volume of 2.7 per cent and an increase in value of 1.4 per cent when comparing the figures with 2009.

·         Asia fared much better with a 6.9 per cent increase in volume for 2010 as a whole and a significant 15.6 per cent increase in value over the same time frame.

Wendy Smith, Business Development Manager at Experian Corpfin, said: “While overall deal volumes have decreased in Q4 and year-on-year from 2009, the overall trend since Q3 2008 has been relatively flat.  It remains to be seen if deal volumes have found a new level at which they will remain or whether the decline will continue or indeed whether we will see an upturn in 2011.”

Table 1: Comparison of regional deal activities Q4 2010

Region

Volume of deals announced

Value of deals announced (£m)

Q4 2010

Q3 2010

Q4 2009

Q4 2010

Q3 2010

Q4 2009

Greater London

297

315

356

35,736

30,429

26,240

South East

106

98

108

5,536

11,133

2,003.13

South West

124

142

163

6,462

2,524

6,802.86

East Anglia

46

35

50

599

112

677.603

Midlands

102

125

129

1,130

2,211

1,186.91

Yorkshire

64

73

62

260

969

269.296

North West

127

142

145

2,729

4,288

2,207.07

North East

32

36

34

859

107

705

Wales

19

34

21

41

45

98.067

Scotland

68

90

100

2,205

13,733

25,287.12

Northern Ireland

4

7

8

91

1,139

77.246

UK wide

989

1097

1176

55,648

66,690

65,554

 

Table 2: Rest of World summary Q4 2010

Rest of World

Volume of deals announced

Value of deals announced (£m)

Q4 2010

Q3 2010

Q4 2009

Q4 2010

Q3 2010

Q4 2009

Europe

2,103

2,629

2,932

157,745

178,121

198,692.04

USA

4,263

5,005

5,550

277,451.383

349,742.741

319,672.937

Asia

2,580

2,778

3,163

176,823

206,414

179,911.924

Table 3: Top five Countries dealing with the UK in Q4 2010

Country

per cent of deals

Deal value (£m)

Deal Volume

USA

13.729per cent

8,502

129

Australia

4.479per cent

5,137

42

Germany

3.19per cent

2,280

30

Canada

2.77per cent

3,881

26

Netherlands

2.55per cent

2,328

24

For a more detailed report, please visit: http://www.corpfinworldwide.com/web/MaAndIpo.jsp

ENDS

Contact:

Ms Serj Heera 

0115 992 2773/07837 652169

serjeet.heera@uk.experian.com

 

Notes to editors

 

*Where consideration disclosed

Deal information is based on transactions announced between 1st October and 24th December 2010 for quarter four figures, and 1st January to 24th December 2010 for the year 2010. Target, bidder or parent of either party must be located in the region which is analysed in order to be included. The deal value of transactions covered in this report is £500,000 or above. Deal activity analysis referring to deal values is based on disclosed actual figures only.

 

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil. 

For more information, visit http://www.experianplc.com.

 

 

 

 

 

 

 

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