Euro uncertainty sends merger and acquisition deals tumbling

 
Tim Wallace
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MERGER and acquisition (M&A) volumes plunged in the second quarter of the year, official figures showed yesterday, as uncertainty over the strength of the economic recovery put off buyers.

Just 111 deals were done in the three-month period, the Office for National Statistics (ONS) said yesterday, down 42 per cent on the same period of 2012.

However, much of that related to uncertainty around the Eurozone, analysts believe.

“It is clear UK firms are engaging in fewer overseas M&A transactions with the ongoing uncertainty in the Eurozone and emerging markets leading UK corporates to adopt a far more cautious strategy to overseas acquisitions,” said Ernst and Young’s Jon Hughes.