There were 371 completed M&A transactions in Q1 2022, compared to 570 in Q4 2021 and 610 in Q1 2021.
The number of M&A transactions at the start of 2022 decreased sharply compared to previous quarters, as the Russia-Ukraine conflict led to a worsening outlook and delayed decisions.
There were 371 completed M&A transactions in Q1 2022, compared to 570 in Q4 2021 and 610 in Q1 2021.
Perhaps most strikingly, the total value of deals made by foreign firms acquiring UK companies dropped by a third from £16.3bn in Q4 2021 to just £11.2bn last quarter.
Just two acquisitions accounted for half this figure, both by American companies: API Group Corporation acquiring Chubb Limited and ICU Medical Inc acquiring Smiths Medical 2020 Ltd.
As well as value, there was also a drop in the overall number of UK companies acquired by foreign companies, with 145 acquisitions last quarter, a decrease of 51 transactions on the previous quarter (196) and 76 fewer than Q1 2021 (221).
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The value of domestic mergers also decreased, though less dramatically, falling to £4bn in Q1 2022 from £4.2bn in Q4 2021 and £5.1bn in Q1 2021.
Meanwhile, investment by UK companies abroad also dropped, with only 13 transactions abroad where UK companies gained majority share ownership in Q1 2022, valued at £0.3bn, down from £2.1bn in Q4 2021.
The Bank of England said that "investment intentions improved across a range of sectors in response to increased demand, and as companies restarted projects that had been paused during the pandemic. However, a few contacts thought that the Russia-Ukraine conflict would weigh on sentiment and could lead to investment decisions being delayed".
