Better financing and low costs pave way for M&A

ON UK GROWTH

LGIM's Robert Churchlow outlines the exciting opportunities available for UK equity investors.

There are some exciting opportunities for UK equity investors and we expect M&A to become increasingly important in 2011, especially on the back of global economic recovery. Even Warren Buffett has reloaded his “elephant gun” looking for more major acquisitions for Berkshire. 2011 has certainly started on the right foot, with a number of deals announced including two mergers in the global exchanges sector, one involving the LSE. Companies should benefit from restored corporate cash reserves, improved financing conditions and relatively cheap cost of debt. With equity valuation attractive...