The total number of mergers and acquisitions (M&A) involving UK companies in the three months to September almost halved from the previous quarter.
The data from the Office of National Statistics is the first indication of how deal activity has been impacted following the UK’s decision to leave the European Union in June’s referendum.
In total, there were 140 successful deals involving UK companies worth £34bn during the period, compared with 278 successful transactions valued at £33.1bn reported in second quarter 2016.
There was also a notable increase in both the number and value of inward and domestic deals during the first three-quarters of the year, while outbound M&A activity has fallen.
The large values reported for inward and domestic M&A over the period were mostly driven by a small number of notable high-profile transactions – such as Arm Holdings, Odeon Cinemas and Poundland.
Andrew Nicholson, head of M&A for KPMG, said:
While it’s perhaps no surprise that the number of M&A deals almost halved in the three months following the EU referendum result, the fact that total deal values nudged up a little during the third quarter will provide something of a fillip to both vendors and dealmakers alike.