Expenditure on UK acquisitions by foreign companies in the second quarter of 2009 was at its lowest point since the second quarter of 1987.
Expenditure on UK acquisitions by foreign companies in the second quarter of 2009 was at its lowest point since the second quarter of 1987, according to a report by the Office for National Statistics (ONS).
The amount paid by foreign companies plummeted from £12.3 billion in the first quarter of this year to £0.4 billion in the second.
Although less dramatic a fall, the report also highlights that the combined deal value for UK companies acquiring abroad was £2.4 billion – the lowest value reported since the first quarter of 2004. One of the largest transactions in the period was the acquisition by Vodafone of a controlling stake in Vodacom for a reported value of £1.6 billion.
Domestic M&A activity fared no better, which at £0.7 billion, is the lowest quarterly value since the third quarter of 1992. In addition, there were 41 domestic transactions, the lowest deal volume since ONS records began in the first quarter of 1969.