Overview
The Deloitte US/UK M&A Deal Monitor follows trends and analyses underlying driving forces in the most active merger and acquisition arena in the world economy today. In our third edition we focus on the latest half year of M&A activity (July 2016 to December 2016) between the US and the UK, set in the context of the most recent 8 quarters in the US/UK 'corridor'.
The Deloitte US/UK M&A Deal Monitor observes M&A activity and developments within the most active business sectors, and the relative volumes of corporate backed and private equity together with the regional dimensions of M&A within both the US and the UK. In this issue we focus on manufacturing, a leading sector in the US/UK deal corridor.
The key themes
- US dealmakers signalled a strong vote of confidence in the UK economy, however some UK dealmakers have put M&A on hold.
- Quantitative Easing continues to support low cost capital raising in Europe, with Euro-denominated "Reverse Yankee" bonds driving US dealmaking.
- Corporate buyers are bidding more aggressively, taking the lion's share of M&A deals whereas private equity has taken a lower share of dealmaking.
- TMT remains the most active sector in US/UK dealmaking, and the migration of technology into all business sectors is giving a boost to Manufacturing deals.
- London continues to be the focus of US outbound M&A but regional deals are growing. California and New York remain the primary location for UK outbound M&A.
Interest rates are low, corporate cash reserves are high, and the supply of capital for corporates and private equity is massive. In a world where there is a scramble for market share, the fundamentals for M&A have never been better".
Cahal Dowds, UK Head of US/UK M&A corridor.
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