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Statistical bulletin: Mergers and Acquisitions Involving UK Companies, Quarter 2 Apr to June 2015 This product is designated as National Statistics

Released: 08 September 2015 Download PDF

Main points

  • In quarter 2 (Apr to Jun) 2015 the total number of mergers and acquisitions (M&A) involving UK companies continued to record historically low levels of activity.
  • There were 93 successful domestic and cross-border M&A transactions involving UK companies reported in quarter 2 (Apr to Jun) 2015, compared with 118 in quarter 1 (Jan to Mar) 2015.
  • In quarter 2 (Apr to Jun) 2015 there were 46 completed domestic acquisitions (UK companies acquiring other UK companies). This is similar to the level of domestic M&A activity reported at quarter 1 (Jan to Mar) 2015 (43 transactions).
  • In quarter 2 (Apr to Jun) 2015 there were 21 completed inward acquisitions of UK companies made by foreign companies, the lowest number since quarter 1 (Jan to Mar) 2013, when 19 transactions were reported.
  • The number of mergers and acquisitions made abroad by UK companies (outward M&A) fell to 26 in quarter 2 (Apr to Jun) 2015, from 48 in quarter 1 (Jan to Mar) 2015.

Your views matter

We are constantly aiming to improve this release and its associated commentary. We would welcome any feedback you might have and would be particularly interested in knowing how you make use of these data to inform our work.  For further information please contact us via email: m&a@ons.gsi.gov.uk  or telephone  Michael Hardie on +44 (0) 1633 455923.

Summary

This release covers Mergers and Acquisitions (M&A) transactions that result in a change of ultimate control of the target company and have a value of £1 million or more. Information on the number and value of transactions are reported, in addition to whether transactions are acquisitions or disposals. Figures relating to mergers are included within acquisitions and those relating to demergers are contained within disposals. These statistics are presented on a current price basis, which are prices as they were at the time of measurement and are therefore not adjusted for inflation.

In Q2 2015 there were a total of 93 successful domestic and cross-border mergers and acquisitions involving UK companies. This included 46 domestic transactions, 21 inward transactions and 26 outward transactions representing a 21% fall on Q1 2015 (118) and a 11% fall on the number recorded in Q2 2014 (104).

The quarterly numbers and value of M&A activity are prone to large quarter-on-quarter movements, as these data relate to specific ‘one time’ only transactions. For example, one quarter can be heavily impacted by one large transaction. This is particularly the case for the deal value. Therefore it can be more appropriate to analyse trends over time. Overall, during Q2 2015 the total number of domestic and cross-borders mergers and acquisitions involving UK companies remained at a much lower level than before and immediately after the 2008-09 the economic downturn.  

Figure 1: Number of acquisitions involving UK companies 1990 to 2015

Figure 1: Number of acquisitions involving UK companies 1990 to 2015
Source: Office for National Statistics

Notes:

  1. Please click on image to enlarge

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The level of overall M&A activity during Q2 2015 can also be placed in context by comparing the levels of M&A activity involving UK companies with the average number, value and average value per transaction of consecutive five-year intervals since 1997 (see table 1 below).

At Q2 2015 the number of mergers and acquisitions abroad made by UK companies (26) is the same as the average number recorded between 2012 and 2015 Q1(26), and still remains below all previous 5 year periods. However, during the same period the average value of outward M&A per transaction increased from £167 million to £414 million at Q2 2015.

The number of mergers and acquisitions of UK companies by foreign companies (inward M&A) in Q2 2015 (21 transactions) showed a 38% decrease when compared with average estimates for 2012-2015 Q1 (34 transactions). This number remains below all previous 5 year periods. In contrast, the average value per transaction between Q2 2015 and 2012-2015 Q1 increased from an average value per transaction of £159 million to £377 million at Q2 2015.

In Q2 2015, the average number of domestic M&A fell to 46 transactions, from 55 during 2012-2015 Q1, a fall of 16%, remaining below all previous 5 year periods.. However, the average value per domestic transaction at Q2 2015 (£49 million), reflected an increase of 75% when compared with the average value for 2012-2015 Q1 (£28 million).

At Q2 2015 the average value of all M&A involving UK companies showed increases in the average value per transaction. However, the number of transactions at Q2 2015 compared with 2012-2015 Q1 fell for both inward and domestic M&A while outward M&A remained unchanged. Overall, this indicates that although there were fewer successful acquisitions and mergers involving UK companies in the second quarter of 2015 compared to 2012-2015 Q1, those transactions which did complete were of a higher monetary value.     

Table 1: The average number and value of M&A involving UK companies, grouped into five year intervals, 1997 to 2015

  Abroad by UK companies Overseas companies in the UK Between UK companies
Number Value Average Number Value Average Number Value Average
1997 to 2014 Q4 80 10,440 130 49 9,481 193 126 6,426 51
1997 to 2001 128 20,402 159 54 9,900 183 136 10,921 80
2002 to 2006 79 6,812 86 46 9,203 200 164 6,448 39
2007 to 2011 67 8,014 119 54 11,813 219 121 4,807 40
2012 to 2015 Q1 26 4,343 167   34 5,407 159   55 1,559 28
Q2 2015 26 10,753 414 21 7,927 377 46 2,250 49

Table source: Office for National Statistics

Table notes:

  1. At Q1 2010 the deal identification threshold for the mergers and acquisitions surveys was raised from £0.1 million to £1.0 million. There is therefore a discontinuity in the number of transactions reported as  illustrated above.
  2. Average value per transaction.
  3. Quarter 4 is Oct to Dec 2014,Quarter 1 is Jan to Mar 2015, Quarter 2 is Apr to Jun 2015.
  4. At Q2 2015 the actual number of completed deals is used to calculate the average value per transaction.

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Transactions in the UK by other UK companies

During Q2 2015, the number of successful M&A of UK companies by other UK companies (domestic M&A) increased slightly when compared with the previous quarter (Q1 2015).  However, domestic M&A at Q2 2015 continued to remain well below the levels reported before the 2008-09 economic downturn (Figure 2).

Figure 2: Transactions in the UK by other UK companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015

Figure 2: Transactions in the UK by other UK companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015
Source: Office for National Statistics

Notes:

  1. At Quarter 1 2010 the deal identification threshold for the mergers and acquisitions surveys was raised from £0.1 million to £1.0 million. There is therefore a discontinuity in the number of transactions reported as illustrated above.
  2. All values are at current prices (see Background Notes for definition).
  3. Please click to enlarge the image

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In Q2 2015 there was a 7% increase in the amount of domestic activity involving UK companies buying other UK companies compared with Q1 2015. There were 46 completed domestic acquisitions reported in Q2 2015 compared with 43 acquisitions in Q1 2015. The total number of domestic acquisitions in Q2 2015 (46) was down on the figure of 51 for Q2 2014, a decrease of 10%.

The value of domestic acquisitions involving a change in majority share ownership increased by 47% between the first and second quarters of 2015 (from £1.5 billion in Q1 2015 to 2.2 billion in Q2 2015). The increase in the value of domestic transactions at Q2 2015 follows a similar trend to that of the first half of the previous year.

Comparison of domestic M&A over the first half (Q1-Q2) of 2015 shows that the combined total value of these acquisitions (£3.8 billion) was higher than that for the same period in 2014 (£3.2 billion). The combined number of domestic acquisitions in Q1 and Q2 2015 fell slightly, from 91 for the same period in 2014, to 89 in 2015. This may indicate that although fewer domestic acquisitions completed during the first half of 2015, those that did were of a higher monetary value.

Figure 3: Summary of mergers and acquisitions in the UK by other UK companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015

Figure 3: Summary of mergers and acquisitions in the UK  by other UK companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015
Source: Office for National Statistics

Notes:

  1. Please click to enlarge the image.

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The total number of domestic M&A can be split into those made by independently-controlled companies and those which are subsidiaries. The acquisition of an independent company means the purchase of a company in its entirety, whereas the acquisition of a subsidiary means the acquisition of a part of a company between 50.1% to 100%.

During Q2 2015 the number of acquisitions of independently-controlled companies (31), totalling £1.4 billion, represented the majority (67%) of the total number of completed domestic acquisitions and mergers (46).

In comparison, domestic acquisitions involving subsidiaries between UK company groups (15), valued at £0.8 billion, accounted for 33% of the overall total number of domestic acquisitions involving a change of majority ownership.

Significant domestic acquisitions, valued at £100 million or more, that took place during Q2 2015.

Greene King Plc of the UK acquired Spirit Pub Company Plc of the UK.

Kier Group Plc of the UK acquired MRBL Ltd of the UK.

Towry Finance Co Ltd of the UK acquired Ashcourt Rowan Plc of the UK.

Circassia Pharmaceuticals Plc of the UK acquired Prosonix Ltd of the UK.

Transactions in the UK by foreign companies

During Q2 2015, mergers and acquisitions of UK companies by foreign companies, involving a change of majority ownership continued to indicate low levels of inward M&A activity for the 10th consecutive quarter, with the exception of Q3 2013. The number of inward M&A at Q2 2015 remained well below the levels reported before the 2008-09 economic downturn (Figure 4).

Figure 4: Transactions in the UK by foreign companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015

Figure 4: Transactions in the UK by foreign companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015
Source: Office for National Statistics

Notes:

  1. At Quarter 1 2010 the deal identification threshold for the mergers and acquisitions surveys was raised from £0.1 million to £1.0 million. There is therefore a discontinuity in the number of transactions reported as illustrated above.
  2. All values are at current prices (see Background Notes for definition).
  3. Please click to enlarge the image.

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In Q2 2015 there were 21 completed inward acquisitions of UK companies made by foreign companies, compared with 27 in the previous quarter (Q1 2015). This reflects a fall in the level of inward M&A activity of approximately 22% and is the lowest number of acquisitions made by foreign companies since Q1 2013, when 19 acquisitions were successful.

The value of inward M&A increased by 32% between the first and second quarters of 2015 from £6.0 billion reported in Q1 2015 to £7.9 billion in Q2 2015. The value of inward M&A reported at Q2 2015 (£7.9 billion) is the highest reported since Q2 2013 (£23.5 billion).

One large publicly reported share transaction which completed during Q2 2015 was undertaken by Banco de Sabadell S.A. of Spain, which acquired TSB Banking Group Plc of the UK.

In Q2 2015 there were 11 successful inward disposals with a total value of £2.5 billion compared with  6 in Q1 2015, valued at £1.1 billion. One disposal which completed in Q2 2015 was KSL Capital Partners International of the Cayman Islands, who sold MHDV Holdings (UK) Ltd of the UK

Other notable inward transactions, valued at £100 million or more, that took place in the UK by foreign companies during Q2 2015

Nikon Corporation of Japan acquired Optos Plc of the UK.

Slater and Gordon Ltd of Australia acquired Professional Services Division of the UK

Brother Industries Ltd of Japan acquired Domino Printing Sciences Plc of the UK.

Verisk Analytics Inc of the United States acquired Wood Mackenzie Ltd of the UK

Frasers Centerpoint Ltd of Singapore acquired MHDV Holdings (UK) Ltd of the UK

Associated Newspapers Ltd of Bermuda acquired Ulysses Enterprises Ltd of the UK.

Wumei Holdings Inc of China acquired CMW (UK) Ltd of the UK.

Actavis Plc of the Republic Ireland acquired Auden McKenzie Holdings Ltd of the UK

Transactions abroad by UK companies

During Q2 2015 the number of UK companies that acquired foreign companies (outward M&A) involving a change of majority ownership, also continued to show much lower levels of M&A activity than before the 2008-09 economic downturn (Figure 5).

Figure 5: Transactions abroad by UK companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015

Figure 5: Transactions abroad by UK companies, from Quarter 1 (Jan to Mar) 2006 to Quarter 2 (April to June) 2015
Source: Office for National Statistics

Notes:

  1. At Q1 2010 the deal identification threshold for the mergers and acquisitions surveys was raised from £0.1 million to £1.0 million. There is therefore a discontinuity in the number of transactions reported as illustrated above.
  2. All values are at current prices (see Background Notes for definition).
  3. Please click to enlarge the image.

Download chart

Between Q1 and Q2 2015, the number of outward mergers and acquisitions made by UK companies saw a notable fall. There were 26 completed outward mergers and acquisitions during Q2 2015, a 46% decrease compared with the previous quarter (48). This decrease between Q1 and Q2 2015 appears to follow a similar pattern to that seen between Q1 and Q2 of the previous year.

Despite the decrease in the number of M&A abroad by UK companies for Q2 2015 the value of outward M&A increased by £1.4 billion, from £9.4 billion in Q1 2015 to £10.8 billion in Q2 2015, a 15% increase. This may indicate that although fewer outward M&A were successful during Q2 compared with Q1 2015, the actual transactions which did complete were higher in value.

The value of outward M&A reported in Q2 2015 (£10.8 billion) indicates a notable increase of £8.3 billion when compared year-on-year with the value reported at Q2 2014(£2.5 billion).

Over half (56%) of the entire value of outward M&A (£10.8 billion) in Q2 2015 can be explained by one large completed acquisition within the Insurance industry sector by Aviva Plc of the UK which acquired Friends Life Group Ltd of Guernsey.

The quarterly estimates for the number and value of disposals of foreign companies made by UK companies during Q2 2015 have been suppressed in this bulletin to avoid any potential disclosure in this type of M&A activity. 

Other notable acquisitions valued at £100 million or more, that took place abroad by UK companies in Q2 2015:

International Game Technology Plc of the UK acquired International Game Technology Inc of the USA.

Old Mutual Plc of the UK acquired UAP Holdings Ltd of Mauritius.

Circassia Pharmaceuticals Plc of the UK acquired Aerocrine AB of Sweden.

DS Smith Plc of the UK acquired Sulipo Zweite Beteiligungsverwaltungs GmbH (Duropack GmbH) of Austria.

Imperial Tobacco Group Plc of the UK acquired Assets of Reynolds and Lorillard Inc of the USA.

Just Eat Plc of the UK acquired Menulog Group Ltd of Australia. 

How our statistics compare with external evidence

Global merger, acquisitions and disposals activity can be driven by the availability of credit. Therefore, when credit conditions deteriorate, as happened in the 2008-09 economic downturn M&A activity declines. M&A activity can also be interpreted by the economic outlook and company profits, in addition to a range of other economic factors. 

The Bank of England’s (BoE) Credit Conditions Survey for Q2 2015 reported that credit availability for the corporate sector was unchanged in Q2 2015.

The BoE’s June 2015 Agents’ Summary of Business Conditions   reported that corporate credit availability had improved in recent months as banks competed with each other on both price and non-price factors but this varied by firm size and sector. Credit was most readily available for the largest firms and those with strong cash flows.

The Office for Budget Responsibility (OBR) in its July 2015 Economic and Fiscal Outlook reported that business investment grew by 2.0 per cent in the first quarter of 2015, higher than the average quarterly growth rate in 2014. Also that Bank lending to non-financial companies remained subdued with recent signs of an improvement in annual growth lending to SMEs.

The Competition and Markets Authority (CMA), which has the power to investigate mergers in the UK, in its quarterly update also reported increased activity. This year the CMA has currently opened 21 mergers cases

Thomson Reuters noted that worldwide M&A had increased by 40% in the first half of 2015 and was the strongest half since 2007. 

The half-year 2015 edition of Mergermarket’s EMEA M&A Deal Drivers reported that while deal volume has slowed, deal value has seen a significant boost on last year’s figures.

Background notes

  1. Overview of Mergers and Acquisitions:

    The M&A estimates are analysed and produced to measure investment data for:

    1. investment in the UK by UK companies (Domestic investment)

    2. investment/disinvestment in the UK by foreign companies (Inward investment/disinvestment)

    3. investment/disinvestment in foreign companies by UK companies (Outward investment/disinvestment)

    Within ONS, M&A data are essential for producing the National Accounts. The survey results form important components of the UK Balance of Payments and Financial Accounts and are vital in the measurement of the financial and non-financial business sector accounts. M&A data is used in the compilation of the estimates for Foreign Direct Investment and additionally used by other government departments when preparing ministerial briefings. For example, HM Treasury, The Department for Business, Innovation and Skills, UK Trade & Investment and HM Revenue and Customs. The M&A data estimates are also used by foreign embassies, economists and academics for research purposes and for periodic statistical comparisons.

  2. Your views matter

    We are constantly aiming to improve this release and its associated commentary. We would welcome any feedback you might have and would be particularly interested in knowing how you make use of these data to inform our work. Please contact us via email: m&a@ons.gsi.gov.uk or telephone Michael Hardie on +44 (0) 1633 455923

  3. Basic quality information

    The Quality and Methodology Information for Mergers and Acquisitions (M&A) surveys report describes in detail the intended uses of the statistics presented in this publication, their general quality and the methods used to produce them.

  4. Relevance to users

    The degree to which the statistical outputs meet users’ needs.

    Within ONS, the mergers and acquisitions data are considered to be essential for producing the National Accounts. The survey results form important components of the UK Balance of Payments and Financial Accounts and are vital in the measurement of the financial and non-financial business sector accounts.

    The Cross-Borders Acquisitions and Mergers survey (M&A) data are used in the compilation of the estimates of Foreign Direct Investment (FDI). These data meet the needs of FDI by collecting data on all acquisitions which lead to a holding in excess of 10% of the issued share capital. These estimates then feed into the UK Balance of Payments and the 'Rest of the World' sector of the financial accounts in the National Accounts, for which there is an EU legal requirement. Individual transaction information is also used to estimate the counterpart in 'portfolio' investment flows for monthly Balance of Payments.

    The data collected are also used in updating business structures and country of ownership codes on the Inter-Departmental Business Register (IDBR).The IDBR is a comprehensive list of UK businesses that is used by government for statistical purposes.

    Elsewhere in government, examples of departments who use the data include:

    • HM Treasury, Economic Analysis Division, where the data are used in preparing briefing and forecasting

    • Department for Business, Innovation and Skills, where direct investment data are required for ministerial briefing, parliamentary questions and in formulating trade policy

    • UK Trade & Investment, where the information is used for briefing on the extent to which the UK is successful in attracting inward investment

    • HM Revenue and Customs, where the data are used to help in forecasting company taxation

    Non-government users include:

    • private companies which are interested in analysing country and industry data for trends by foreign firms in the UK and by UK companies abroad and also for researching corporate finance activity and for the purpose of investment banking

    • UK embassies in foreign countries, who are interested in information on specific countries and companies making acquisitions, and

    • private sector economists, journalists and academics who are interested in information on particular industries and particular countries for research purposes and who use the data for periodic statistical comparisons

    Feedback from users has indicated that the information received from the M&A survey has a high degree of relevance across the above user groups, meets the vast majority of user needs, and all information currently collected and published is used.

    Source of data:

    The information collected is based on reports in the financial press, specialist magazines, company and financial websites supplemented by special surveys to businesses to determine the form, value and timing of each transaction.

    If the information is not yet in the public domain, such transactions may not be reflected in the analysis. Where full information has not yet been received on the details of the acquisition or disposal, the value of the transaction indicated in the public domain is used as an interim estimate.

    The data shown in this release relate solely to mergers and acquisitions undertaken by companies: acquisitions by individuals are not included.

    This publication contains data relating mergers, demergers, acquisitions and disposals. Figures relating to mergers are included within acquisitions and those relating to demergers are contained within disposals.

    ONS makes every effort to provide informative commentary on the data in this release. As part of the quality assurance process, individual businesses are contacted in an attempt to capture reasons for large period on period data movements. It can prove difficult to gather detailed reasons from some businesses to help inform the commentary. Frequently, reasons given for data movements refer to a ‘change in market conditions’ or a ‘restructure of the company’. Consequently, it’s not possible for all data movements to be fully explained.

    ONS are aware that a number of users make use of these data for modelling or forecasting purposes. In doing so, it is important that users make note of our revisions policy (see note 7 in the background notes) and that all time series are on a ‘current price’ basis, which means that the values are as they were at the time of measurement and not adjusted for inflation. Acquisitions and disposal activity can be affected by UK and global economic and political issues and therefore quarterly estimates can be volatile.

    One question often asked of the M&A release is ‘why is there a time delay between the announcement of M&A transactions in the press and the inclusion of these transactions within ONS M&A figures?’ The difference is that ONS figures record when a transactions legally completes as opposed to when the transaction has been announced in the press. The complexities surrounding the acquisitions/disposals taking place often incurs a time lag, which can vary between quarters.

  5. Significant transactions

    Significant Transactions tables show the reported figures for a selection of significant transactions which occurred in the quarter, where ‘significance’ is defined as the absolute value of the deal.

    The figures shown are usually the ones available from the financial press or other sources in the public domain although occasionally, with the consent of the company, the value returned to the ONS is used in the tables instead of the press reported figure. If the company’s consent cannot be obtained then the deal is excluded, however, the values are included in the aggregate tables. Occasionally, therefore, a large deal may be missing (suppressed) from the lists so it is best to regard these tables as an indication of the ranking of deals rather than a completely exhaustive listing.

    Press reported figures for M&A transactions often differ to some extent from those supplied by companies to ONS and it is the latter which are used in compiling statistical aggregates in tables 1-10. Included in the prices quoted in the tables of significant transactions is the total published price paid for the company excluding any assumed debt where known. Deferred payments are included in the reported price even if the payment is made in a different quarter.

  6. Types of transactions covered

    Mergers are acquisitions in which all or part of the payment is made in shares, such that the shareholders of the two companies become shareholders of a new, combined company group.

    Demergers are disposals where a company group divides into two or more separate companies, in such a way that the shareholders of the restructured companies remain the same, or retain the equivalent value shareholding in one of the newly independent companies. Demergers are included in the statistics within disposals.

    Acquisitions are transactions which involve one company purchasing the ordinary shares of a second company (‘target company’). A target company is usually of a smaller size than the company undertaking the purchase.

    Disposal is a term used to describe the action when a company or organisation sells or liquidates the ordinary shares of a second company (‘target company’).

    Cross-border acquisitions denote transactions where a company in one country acquires, either directly or indirectly, a controlling interest in a company in another country.

    Direct transactions are those where a company acquires a controlling interest in another company.

    Indirect transactions are those where a company uses an existing foreign subsidiary to acquire a controlling interest in a company resident in another country. The acquiring foreign intermediate company may be located in the same country in which the acquisition is being made or in a different country.

    Acquisitions within the UK by other UK companies denote mergers and acquisitions involving only UK registered companies.

    Where the acquired company was a subsidiary of another company the transaction is classified as a sale between company groups.

    The phrase ‘acquisitions in the UK by UK companies’ refer to deals where the ultimate ownership remains in the UK. This heading does not cover the total number or value of deals where a UK company is the acquirer. When a foreign company acquires a UK company through one of its existing UK subsidiaries or a UK registered special purpose vehicle that deal is shown as part of the data under ‘acquisitions in the UK by foreign companies’.

    Acquisition of independent companies
    The acquisition of an independent company means the purchase of a company in its entirety – the company itself and all of its subsidiaries

    Acquisition of subsidiary companies
    The acquisition of a subsidiary company means the purchase of part of a company

  7. Financing

    This statistical bulletin provides details of the application of funds to effect mergers and acquisitions and the proceeds raised from disinvestments and demergers.

    For indirect foreign transactions there is the added complication of considering the movements of funds either as capital injection or in the form of loans between parent companies and their foreign subsidiaries making the acquisition. Occasionally, the foreign subsidiary obtains the funds required partly or entirely outside the UK from sources such as:

    • own resources

    • borrowing from banks and other local sources

    • share, bond and other capital or notes issued abroad

    Also, a transaction may be funded by more than one method.

  8. Definitions of geographic areas

    Table A: Definitions of geographic and economic areas

    Europe

    Europe
    EU Austria Belgium Bulgaria Croatia
      Cyprus Czech Republic Denmark Estonia
      Finland France Germany Greece
      Hungary Irish Republic Italy Latvia
      Lithuania Luxembourg Malta Netherlands
      Poland Portugal Romania Slovakia
      Slovenia Spain Sweden  
     
    Other European Countries Albania Andorra Belarus Bosnia and Herzegovina
      Faroe Islands Gibraltar Iceland Liechtenstein
      Macedonia, the Former Yugoslav Republic of Moldova Montenegro Norway
      Russian Federation San Marino Serbia Switzerland
      Turkey Ukraine UK Offshore Islands (Guernsey, Jersey, other Channel Islands & Isle of Man) Vatican City State
    The Americas      
    Anguilla Antigua & Barbuda Argentina Aruba Bahamas
    Barbados Belize Bermuda Bolivia Bonaire, Sint Eustatius & Saba
    Brazil British Virgin Islands Canada Cayman Islands Chile
    Colombia Costa Rica Cuba Curacao Dominica
    Dominican Republic Ecuador El Salvador Falkland Islands Greenland
    Grenada Guatemala Guyana Haiti Honduras
    Jamaica Mexico Montserrat Nicaragua Panama
    Paraguay Peru St Kitts & Nevis Saint Lucia Sint Maarten
    St Vincent & the Grenadines Suriname Trinidad & Tobago Turks & Caicos Islands Uruguay
    US Virgin Islands USA Venezuela    
    Asia      
    Afghanistan Armenia Azerbaijan Bahrain Bangladesh
    Bhutan Brunei Darussalam Burma/Myanmar Cambodia China
    Georgia Hong Kong India Indonesia Iran
    Iraq Israel Japan Jordan Kazakhstan
    Kuwait Kyrgyzstan Laos Lebanon Macao
    Malaysia Maldives Mongolia Nepal North Korea
    Oman Pakistan Palestinian Territory Philippines Qatar
    Saudi Arabia Singapore South Korea Sri Lanka Syria
    Taiwan Tajikistan Thailand Timor - Leste Turkmenistan
    United Arab Emirates Uzbekistan Viet Nam Yemen  
    Australasia & Oceania    
    American Samoa Antarctica Australia Bouvet Island Christmas Island
    Cocos (Keeling) Islands Cook Islands French Polynesia French Southern & Antarctic Lands Fiji
    Guam Heard Island & Macdonald Islands Kiribati Marshall Islands Micronesia, Federated States of
    Nauru New Caledonia New Zealand Niue Norfolk Island
    Northern Mariana Islands Palau Papua New Guinea Pitcairn Samoa
    Solomon Islands South Georgia & South Sandwich Islands Tokelau Tonga Tuvalu
    US Minor Outlying Islands Vanuatu Wallis & Futuna    
    Africa      
    Algeria Angola Benin Botswana British Indian Ocean Territory
    Burkina Faso Burundi Cameroon Cape Verde Central African Republic
    Chad Comoros Congo Democratic Republic of the Congo (Zaire) Djibouti
    Egypt Equatorial Guinea Eritrea Ethiopia Gabon
    Gambia Ghana Guinea Guinea Bissau Ivory Coast (Cote d'Ivoire)
    Kenya Lesotho Liberia Libya Madagascar
    Malawi Mali Mauritania Mauritius Morocco
    Mozambique Namibia Niger Nigeria Rwanda
    Sao Tome & Principe Senegal Seychelles Sierra Leone Somalia
    South Africa South Sudan St Helena, Ascension & Tristan da Cunha Sudan Swaziland
    Tanzania Togo Tunisia Uganda Zambia
    Zimbabwe        

    Table source: Office for National Statistics

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  9. Revisions

    Data for Q1 2015 has been revised in the light of new information, and so revisions to the data for Q1 2015 have been published in this statistical bulletin. No further revisions to data prior to Q1 2015 have been made. Therefore time series data for all quarters of 2014 and any previous historic quarterly periods remain unchanged.

    Annual data tables for 2014 are produced in conjunction with the Q4 2014 data. Revisions to the 2014 quarterly and annual figures are recalculated at Q1 2015 only. No revisions to annual data prior to 2014 have been made. Therefore time series data for previous historic annual periods remains unchanged.

    Revisions to the aggregates used in M&A principally occur for the following reasons:

    • Completion of transactions

    On announcement of a proposed transaction an expected completion date is usually given. The publicly reported values will be allocated to the quarter of expected completion. If the transaction is ultimately completed in an earlier or later quarter, the recorded values will be reallocated to the new quarter.

    • Publicly reported values

    Publicly reported values are initially used to compile the aggregates. These can vary considerably from the values ultimately supplied by the respondents, frequently because the assumption of debt has been included in the publicly reported value. A nominal value is applied if no publicly reported value is available. The final values used to create the aggregates are those supplied by the respondent.

    • Non-completion of transactions:

    On announcement of a proposed transaction the publicly reported value of the transaction is recorded. If the transaction does not subsequently take place the recorded value will be deleted.

    • Non-share transactons

    On announcement of a proposed transaction it may appear that there will be transactions in the share capital of the companies involved and the publicly reported values will be recorded. If subsequent information contradicts this the recorded values will be amended or deleted.

    • Control:

    On announcement of a proposed transaction it may appear that the transaction will give the purchasing company control of the purchased company, that is, a share ownership of greater than 50%. If subsequent information contradicts this the recorded values will be amended or deleted.

    • Revisions from respondents:

    Very occasionally respondents revise the values that they have previously supplied to ONS. The revised values are those used to create the aggregates

    Average Revisions over the Previous Five Quarters

    Values quoted in £ million

    Analysing average revisions between provisional and final estimates can provide an indication of reliability in an initial statistic. Provisional statistics may be based on less information than is available for final statistics as they have been processed more quickly to meet the demand of customers. By looking at these average revisions it can help us determine whether revisions are being made consistently in one direction i.e. if early estimates are consistently under or overestimating the later figures. A test is subsequently performed on these average revisions to determine if they are statistically different from zero. Revisions that are not statistically significant imply that an average revision might be non-zero simply through random effects.

    Table B: Average revisions, Quarter 1 (Jan to Mar) 2014 to Quarter 2 (April to June) 2015

      First Published Value (Q1 2015) Number in Latest Revised Period (Q2 2015) Average Revision 
    Number of Outward Acquisitions  41.0 48.0 6.6
    Number of Outward Disposals  8.0 9.0 5.4
    Number of Inward Acquisitions  21.0 27.0 7.6
    Number of Inward Disposals  3.0 6.0 2.2
    Number of Domestic Acquisitions  28.0 43.0 11.6

    Table source: Office for National Statistics

    Table notes:

    1. Quarter 1 is Jan to Mar 2015 Quarter 2 is Apr to June 2015
    2. * significant revision
    3. " suppressed

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    Table C: Average revisions, Quarter 1 (Jan to Mar) 2014 to Quarter 2 (Mar to Apr) 2015

      First Published Value (Q1 2015) Value in Latest Revised Period           (Q2 2015) Average Revision  Average without Regard to Sign
    Value of Outward Acquisitions                               8,485                             9,372 -117.40 761.4
    Value of Outward Disposals                          3,449.00 .. 605.80 605.8
    Value of Inward Acquisitions                         4,739.00 7,927.0 1,198.0 1,198.0
    Value of Inward Disposals  458.0 1,082.0 299.8 299.8
    Value of Domestic Acquisitions                         1,152.00 1,557.0 416.8 416.8

    Table source: Office for National Statistics

    Table notes:

    1. Quarter 1 is Jan to Mar 2015 Quarter 2 is Apr to Jun 2015
    2. * Significant revision
    3. " Suppressed

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  10. Response rates

    Table D: Response Rates for Quarter 1 2015 and Quarter 2 2015

    Cross-Border Mergers and Acquisitions (CBAM) Outwards 
    Statistics of Sample Size – Latest Survey Conducted:
    Reference Period Quarter 1 2015 Quarter 2 2015
    Response Rate (%) 91% 96%
         
    Cross-Border Mergers and Acquisitions (CBAM) Inwards 
    Statistics of Sample Size – Latest Survey Conducted:
    Reference Period Quarter 1 2015 Quarter 2 2015
    Response Rate (%) 92% 94%
         
    Domestic Mergers and Acquisitions (DAM)
    Statistics of Sample Size – Latest Survey Conducted:
    Reference Period Quarter 1 2015 Quarter 2 2015
    Response Rate (%) 95% 92%
     

    Table source: Office for National Statistics

    Table notes:

    1. Previous quarter has been revised, latest quarter is provisional.
    2. Quarter 1 is Jan to Mar 2015, Quarter 2 is Apr to June 2015.

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  11. Notes to tables

    The deal identification threshold was increased at Q1 2010 to a value of £1.0 million from a previous value of £0.1 million. As a consequence there is a discontinuity in the value and number of deals reported from Q1 2010 onwards compared with previous periods.

    Symbols used in the tables are:

    .. Figure suppressed to avoid disclosure of information relating to individual enterprises.
    – Nil or less than half the final digit shown.

    The sum of constituent items in tables may not always agree exactly with the totals shown due to rounding.

  12. Disclosure

    It is sometimes necessary to suppress figures for certain items in order to avoid disclosing information about an individual business. Further information on why data are suppressed is available in the ONS Disclosure Control Policy.

  13. Office for National Statistics

    The Office for National Statistics (ONS) is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to Parliament. ONS is the UK government's single largest statistical producer. It compiles information about the UK's society and economy, and provides the evidence-base for policy and decision-making, the allocation of resources, and public accountability. The Director General of ONS reports directly to the National Statistician who is the Authority's Chief Executive and the Head of the Government Statistical Service.

    The UK Statistics Authority has reviewed this publication in their report: “Assessment of compliance with the Code of Practice for Official Statistics”: Statistics of International Transactions, which was published on 8 December 2011. This review recommended that the Mergers and Acquisitions estimates be designated as National Statistics, subject to ONS carrying out certain requirements. ONS met all of these requirements on 3 May 2013.


    Designation can be broadly interpreted to mean that the statistics:

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    • are produced according to sound methods and

    • are managed impartially and objectively in the public interest

    Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.

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    The Government Statistical Service is a network of professional statisticians and their staff operating both within the Office for National Statistics and across more than 30 other government departments and agencies.

  16. Statistical Service (GSS) business statistics

    To find out about other official business statistics, and choose the right data for your needs, use the GSS Business Statistics Interactive User Guide. By selecting your topics of interest, the tool will pinpoint publications that should be of interest to you, and provide you with links to more detailed information and the relevant statistical releases. It also offers guidance on which statistics are appropriate for different uses.

  17. Discussing ONS business statistics online

    There is a Business and Trade Statistics community on the StatsUserNet website. StatsUserNet is the Royal Statistical Society’s interactive site for users of official statistics. The community objectives are to promote dialogue and share information between users and producers of official business and trade statistics about the structure, content and performance of businesses within the UK. Anyone can join the discussions by registering via either of the links.

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    ONS has published commentary, analysis and policy on 'Special Events' which may affect statistical outputs. For full details visit the Special Events page on the ONS website.

  19. Release policy

    Complete runs of series in this release are available to download free of charge at www.ons.gov.uk/ons/datasets-and-tables/index.html. Alternatively, for low-cost tailored data call Online Services on +44 (0)845 601 3034 or email info@ons.gsi.gov.uk
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  20. Copyright

    © Crown copyright 2015.

    You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence.

    View the Open Goverment Licence or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU
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    This document is also available on the website at www.ons.gov.uk.

    Next Publication Date: 
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  21. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

    These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.

Statistical contacts

Name Phone Department Email
Michael Hardie +44 (0)1633 455923 International Transaction Branch. Structural and International Statistics Division. michael.hardie@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
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