The total amount of money spent on UK companies by foreign acquirers rocketed in the last quarter of 2009, according to research by the Office of National Statistics (ONS).

The total amount of money spent on UK companies by foreign acquirers rocketed in the last quarter of 2009, according to research by the Office of National Statistics (ONS).

Expenditure on acquisitions in the UK by foreign entities increased by 245 per cent from the third quarter to £13.8 billion in the last three months of 2009.

In contrast with the high value of inbound M&A activity, the total value of overseas acquisitions by UK companies decreased by 64 per cent to £900 million in the last three months of 2009, the lowest quarterly value reported since ONS records began in 1987.

In addition, expenditure on domestic UK acquisitions fell by 32 per cent to £1.3 billion in the last quarter of the year. For 2009 as a whole, the total value of domestic UK deals was £12.1 billion, the lowest level since 1994.

The figures come after business secretary Lord Mandelson called for tougher takeover rules following the recent acquisition of British confectioner Cadbury by US food group Kraft.

Speaking at the annual Trade and Industry Dinner, Mandelson said he had concerns that shareholders with little interest in holding on to businesses in the long-term could decide the fate of a company with thousands of employees such as Cadbury.