The Sunday Times is suggesting the recent high levels of M&A activity is on its way to the UK. Not sure that M&A in the SME market has been slow but as the trickle down from the top end will be welcome.
But, after a gloomy first quarter, Royal Dutch Shell’s £47bn takeover of BG Group in April proved that British companies have not lost ambition. The deal, one of the largest in the sector in 20 years, came as the falling crude price caused the oil giants to reconsider long-mooted takeovers. Buyout firms, sitting on record levels of cash, are expected to splash out on new targets in the coming months. Public companies are likely to be more active in pursuit of deals after the summer if conditions remain favourable. Dwayne Lysaght of JP Mor–gan predicts chief executives will become more adventurous. “Confidence is building, and boards and investors are more comfortable backing strategic deals today than 12 or 24 months ago,” he said.