UK crowned Europe’s dealmaking hub in 2024

UK involvement in M&A rocketed in 2024 making it the most active dealmaking hub in Europe.

According to figures from LSEG Deals Intelligence announced M&A with UK involvement totalled US$324.2 billion in 2024, 33 per cent more than the value recorded during 2023. This was despite a 6 per cent decline in the number of deal announcements over the same period.

M&A involving a UK target totalled US$182.9 billion in 2024, 51 per cent more than the value recorded during 2023 following a doubling of domestic M&A and a 21 per cent increase in inbound deals.

Fifty-one per cent of UK target M&A involved an overseas acquirer, with the remaining 49 per cent involving domestic buyers.

According to LSEG, the United Kingdom was the third most targeted country for M&A globally this year, after the United States and China, with deals involving UK targets accounting for 6 per cent of the global M&A total, compared to 4 per cent last year.

Eight mega deals, each worth US$5 billion or more, involving a UK target were announced during 2024, the highest annual total since 2021.

The US$14.5 billion bid for London-based school operator, Nord Anglia Education, is the largest deal with UK involvement so far during 2024. With it, private equity-backed M&A involving a UK target reached US$62.7 billion in 2024, up 49 per cent from the previous year and an annual total only exceeded twice before in the last decade.

Financials was the most targeted sector in the UK, accounting for 17 per cent of overall UK target M&A activity, with multi-billion dollar bids for asset management firm Hargreaves Lansdown and Nationwide Building Society’s plan to buy Virgin Money.

The Ministry of Defence’s acquisition of military housing, LondonMetric Property’s merger with LXi REIT, and the Barratt/Redrow merger boosted the real estate sector to second place.

The value of UK outbound M&A however declined 13 per cent from last year to reach US$71.8 billion.

Lucille Jones, Senior Manager at LSEG Deals Intelligence, said: “Following a year of muted M&A activity in 2023, as deals were put on hold amid geopolitical instability and elevated interest rates, we are seeing the beginnings of an M&A rebound in the UK. The value of deals announced this year involving British companies has increased by one-third compared to 2023, making the UK the most active hub for dealmaking in Europe. While interest rates remain historically high, attractive valuations and a more stable dealmaking environment may stimulate more activity next year.”

Find out more upbeat news about the appeal of the UK in 2024

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