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Statistical bulletin: Mergers and Acquisitions Involving UK Companies, Q3 2013 This product is designated as National Statistics

Released: 03 December 2013 Download PDF

Key points

  • The total number of domestic and cross border transactions involving UK companies during Q3 2013 was 116 (excluding outward acquisitions). This remains level when compared with Q2 2013 (116) and is a slight increase on the number of transactions recorded in Q3 2012 (112).
  • During Q3 2013, there were 60 domestic acquisitions involving a change in majority share ownership between UK companies. This was similar to the number reported in Q2 2013 (64). However, the value of domestic acquisitions fell from £2.1 billion in Q2 2013 to £0.8 billion in Q3 2013 (current price basis - not adjusted for inflation).
  • During Q3 2013, there were 46 acquisitions of UK companies by foreign companies (inward acquisitions) involving a change in majority share ownership, an increase of 39% (13 transactions) when compared with the previous quarter (Q2 2013). The value of inward acquisitions decreased considerably from £23.7 billion recorded in Q2 2013 to £2.1 billion in Q3 2013. However the value recorded in Q2 2013 was a spike caused by one significant transaction.

Overview

This statistical bulletin provides estimates of the value and numbers of mergers, acquisitions and disposals involving UK companies with values of £1.0 million or more. The information provided reflects solely the change in majority ownership (ordinary shares) and therefore only transactions which result in a change of ultimate control of the target company are included. See note 5 of the Background Notes for more detail.

The M&A estimates are analysed and produced to measure investment data for:

Within ONS, M&A data are essential for producing the National Accounts. The survey results form important components of the UK Balance of Payments and Financial Accounts and are vital in the measurement of the financial and non-financial business sector accounts.

M&A data is used in the compilation of the estimates for Foreign Direct Investment and additionally used by other government departments when preparing ministerial briefings, for example, HM Treasury, The Department for Business, Innovation and Skills, UK Trade & Investment and HM Revenue and Customs. The M&A data estimates are also used by foreign embassies, economists and academics for research purposes and for periodic statistical comparisons.

ONS is aware that a number of users make use of these data for modelling or forecasting purposes. In doing so it is important that users make note of our revisions policy (see note 7 in the background notes) and that all time series are on a current price basis, which means that the values are as they were at the time of measurement and not adjusted for inflation. Acquisitions and disposal activity can be affected by UK and global economic and political issues and therefore quarterly estimates can be volatile.

This publication contains data relating to mergers, demergers, acquisitions and disposals. Acquisitions are transactions which involve one company purchasing the ordinary shares of a target company. A target company is usually of a smaller size than the company undertaking the purchase. Disposals are transactions which involve a company or organisation selling or liquidating the ordinary shares of a second company.

Mergers are acquisitions in which all or parts of the payment are made in shares, such that the shareholders of the two companies become shareholders of a new, combined company group. Demergers are disposals where a company group divides into two or more separate companies, in such a way that the shareholders of the restructured companies remain the same, or retain the equivalent value shareholding in one of the newly independent companies. In the text that follows, figures relating to mergers are included within acquisitions and those relating to demergers are contained within disposals.

Global mergers, acquisitions and disposals activity is often driven by the availability of credit and company profits as well as a sense of confidence in the economic outlook. The majority of large M&A transactions involve some element of borrowing or leveraging. Therefore, when credit conditions deteriorate, as happened following the 2008 recession caused by the global financial crisis (which led to a slowdown in global economic growth), M&A activity is reduced. On the other hand, the process of completing an M&A transaction also takes time and sometimes there may be a lag between improving economic conditions and any quarter-on-quarter increase in M&A activity.

One question often asked of the M&A release is ‘why is there a time delay between the announcement of M&A transactions in the press and the inclusion of these transactions within ONS M&A figures?’ The difference is that ONS figures record when a transaction legally completes as opposed to when the transaction has been announced in the press. The complexities surrounding the acquisitions/disposals taking place often incurs a time lag, which can vary between quarters.

Information on M&A reference tables

Tables 2 through to 7D, which contain the annual 2012 M&A estimates, will be updated when the M&A estimates for Q4 2013 are produced and will be published on 4 March 2014.

 

User engagement

We are constantly aiming to improve this release and its associated commentary. We would welcome any feedback you might have and would be particularly interested in knowing how you make use of these data to inform our work. Please contact us via email:  m&a@ons.gsi.gov.uk  or telephone Ciara Williams on +44 (0)1633 456455.

Summary

The total number of domestic and cross border transactions involving UK companies during Q3 2013 was 116. This total includes domestic acquisitions (60), inward acquisitions (46), inward disposals (seven) and outward disposals (three). This was a slight increase on the number of transactions (112) recorded in the same quarter of the previous year (Q3 2012).

During Q3 2013, the value of domestic acquisitions fell from £2.1 billion in Q2 2013 to £0.8 billion in Q3 2013 (current price basis - not adjusted for inflation). During Q2 and Q3 2013, domestic mergers and acquisitions activity remained flat as the number of transactions were similar. This may be an indication that although the UK economy grew in Q3 2013, UK companies are continuing to delay their investment and expansion decisions until the economic recovery has been sustained over several periods.

At Q3 2013, the number of inward acquisitions involving a change in majority share ownership was 46 transactions, compared with 33 recorded at Q2 2013. There has been a gradual upturn in the number of inward acquisitions made by foreign companies since Q1 2013. This increase of inward M&A activity may suggest that the risk associated with expanding within the UK has reduced and foreign investors are more apt to pursue business opportunities within the UK market.

The number of inward disposals during Q3 2013 remained flat with seven transactions reported. The value has consistently increased during 2013, from £0.1 billion in Q1 to £0.6 billion in Q3. However, these values continue to be far below levels seen before the 2008 recession.

How our statistics compare with external sources

During Q3 2013, ONS domestic M&A data appears to be in line with the information from the Bank of England (BoE). The BoE Credit Conditions Survey for Q3 2013 reported that both demand and supply of credit slowly increased. Moreover, businesses are expecting demand to pick up as the recovery is sustained. However, a more complex picture emerged from the BoE Summary of Business Conditions. It explained that during Q3 2013 there appeared to be a divergence in credit availability, where larger firms were given much easier access to funding over smaller firms.

The International Monetary Fund (IMF) indicated in its Global Financial Stability Report that the international environment appears to show signs of risk at present. The IMF characterised the current  economic situation as a ‘period of transition’, in which many of the world’s economic powers are adjusting their monetary and fiscal policies in order to secure the return of stable growth, or in response to its return. Furthermore the BoE’s July Summary of Business Conditions outlines that UK companies were reporting difficulties in accessing international finance, which may be limiting the extent to which they can expand into other foreign global markets.

ONS collects cross border M&As that take place between the UK and a foreign shore. Often transactions are announced by the media and external commentators as involving a UK company when in fact they do not affect the UK at all. ONS receives accurate information from the company to confirm this. One such transaction occurred during Q3 2013, where Liberty Global Inc of the USA acquired Virgin Media Inc, also of the USA. This acquisition was conducted entirely between two USA companies and therefore the Q3 2013 value for inward acquisitions does not include the data for this transaction.

Table A(i): Number and value of acquisitions involving UK companies

Values in £ billion
  Acquisitions in the UK by other UK companies¹ (domestic)   Acquisitions in the UK by foreign companies¹ (inward)   Acquisitions abroad by UK companies¹ (outward)
  Number Value   Number Value   Number Value
                 
2012 Q1  62 1.1   51 4.2   25 0.8
2012 Q2  81 1.0   48 2.5   41 6.2
2012 Q3  62 0.6   39 8.8   21 8.2
2012 Q4  61 0.7   23 1.9   35 2.7
                 
2013 Q1 38 2.8   19 3.5   26 1.8
2013 Q2 64 2.1   33 23.7   12 0.6
2013 Q3 60 0.8   46 2.1   .. ..
                 
Change on most recent quarter with previous quarter  
Change  -4  -1.3    13  -21.6    ..  ..
% change -6.3% -61.9%   39.4% -91.2%   .. ..
                 
Change on most recent quarter with a year earlier  
Change  -2  0.2    7  -6.7    ..  . .
% change -3.2% 33.3%   17.9% -76.2%   .. ..
                 

Table source: Office for National Statistics

Table notes:

  1. Q1 to Q3 2013 are provisional. See background notes 4, 5 and 6.
  2. .. Denotes disclosive figures.

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Table A(ii): Number and value of disposals involving UK companies

  Disposals in the UK by foreign companies¹ (inward)   Disposals abroad by UK companies¹ (outward)
  Number Value   Number Value
           
2012 Q1  8 ..   8 2.1
2012 Q2  7 ..   14 1.4
2012 Q3  4 ..   7 0.6
2012 Q4  8 1.2   11 ..
           
2013 Q1 4 0.1   9 ..
2013 Q2 7 0.5   12 2.0
2013 Q3 7 0.6   3 0.4
           
Change on most recent quarter with previous quarter
Change  0  0.1    -9  -1.6
% change 0.0% 20.0%   -75.0% -80.0%
           
Change on most recent quarter with a year earlier
Change  3  ..    -4  -0.2
% change 75.0% ..   -57.1% -33.3%

Table source: Office for National Statistics

Table notes:

  1. Q1 to Q3 2013 are provisional. See background notes 4, 5 and 6.
  2. .. Denotes disclosive figures

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Transactions in the UK by other UK companies

This section illustrates the value and number of acquisitions in the UK by other UK companies.

During Q3 2013 there was a slight decrease in the number of quarter on quarter domestic acquisitions involving UK companies. There were 60 transactions reported in Q3 2013 compared with 64 transactions reported in Q2 2013.

The value of domestic acquisitions involving a change in majority share ownership fell by approximately £1.3 billion between the second and third quarters of 2013 (from £2.1 billion in Q2 2013 to £0.8 billion in Q3 2013). This downturn in value appears to follow a similar pattern to the trends that emerged during Q3 for the past two years (Q3 2011 and Q3 2012) (see Figure 1).

Figure 1: Value and number of acquisitions of UK companies by other UK companies

Figure 1: Value and number of acquisitions of UK companies by other UK companies
Source: Office for National Statistics

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When looking at all domestic acquisitions in the first three quarters (Q1-Q3) of 2013 combined, the total value of these (£5.7 billion) was larger than that of the same period in 2012 (£2.7 billion). In contrast, between the same periods, the number of domestic acquisitions fell from 205 to 162. This may indicate that although fewer domestic acquisitions were completed, the ones which did were of a higher monetary value.

It is possible to split out the total number of domestic mergers and acquisitions into those of independently controlled companies and those which are subsidiaries. The acquisition of an independent company means the purchase of a company in its entirety, whereas the acquisition of a subsidiary means the purchase of part of a company.

The estimates for the number and value of domestic acquisitions continued to be dominated by acquisitions of independently controlled companies and the proportion between independant and subsidiary purchases remained relatively unchanged. There were 48 acquisitions of independent UK companies involving other UK companies at Q3 2013 which is similar to the number reported in Q2 2013 (51) (see Figure 2).

Figure 2: Summary of mergers and acquisitions in the UK by UK companies

Figure 2: Summary of mergers and acquisitions in the UK by UK companies
Source: Office for National Statistics

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The value of acquisitions of independent companies at Q3 2013 was valued as £0.7 billion, of which £0.5 billion were cash funded transactions. This represents approximately 88% of the total value of domestic acquisitions (£0.8 billion). There was a sharp fall in the value of transactions involving independent UK companies between Q2 and Q3 2013, from £1.8 billion to £0.7 billion.

The following significant acquisition between two UK companies that took place in Q3 2013:

  • Kier Group Plc of the UK acquired May Gurney Integrated Services Plc of the UK.

 

Transactions in the UK by foreign companies

This section illustrates the value and number of acquisitions and disposals in the UK by foreign companies.

At Q3 2013, the number of inward acquisitions made by foreign companies increased by 39% from Q2 2013. There were 46 acquisitions of UK companies in Q3 2013, up from 33 in the previous quarter (Q2 2013). The USA continues to be a prime investor in the UK and during Q3 2013 there were five significant inward acquisitions involving American-owned businesses with values above £100 million.

In contrast, the estimate for the value of UK companies acquired by foreign companies decreased sizeably to £2.1 billion at Q3 2013, falling from £23.7 billion in the previous quarter. However, the value recorded in Q2 2013 was a spike caused by one significant transaction (see Figure 3).

Figure 3: Value and number of acquisitions in the UK by foreign companies

Figure 3: Value and number of acquisitions in the UK by foreign companies
Source: Office for National Statistics

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The value of inward disposals made by foreign companies increased slightly between Q2 and Q3 2013, while the number of inward disposals remained the same as previously recorded in Q2 2013. There were seven disposals valued at a total of £0.6 billion in Q3 2013, compared with seven disposals worth £0.5 billion in the previous quarter.

The following significant transactions took place in the UK by foreign companies during Q3 2013:

  • Alinda Capital Partners LLC of the USA disposed of Hydriades IV Limited of the UK.

  • Oaktree Capital Group, LLC of the USA & Irving Place Capital, LLC of the USA disposed of Chesapeake Ltd of the UK.

  • Calcium Holdings S.A.R.L. of Luxembourg disposed of Cabot Credit Management Ltd of the UK.

  • Bain Capital Europe Fund III, LP of the Cayman Islands acquired Plasma Resources UK Ltd of the UK.

  • Carlyle Group Management LLC of the USA acquired Chesapeake Ltd of the UK.

  • Lockheed Martin Corporation of the USA acquired Amor Group Ltd of the UK.

  • Encore Capital Group, Inc of the USA acquired Cabot Credit Management Ltd of the UK.

  • Crisps Parent Limited of the Caymen Islands acquired Tyrrells Group Holdings Limited of the UK.

Transactions abroad by UK companies

This section illustrates the value and number of acquisitions and disposals abroad by UK companies.

The estimates of the number and value of acquisitions abroad by UK companies during Q3 2013 have been suppressed in this bulletin in order to avoid the potential disclosure of companies involved in this type of M&A activity.

Between Q1 2005 and Q3 2007 before the onset of the 2008 recession, M&A activity of UK companies abroad involving a change in majority ownership saw a steady and gradual increase in the number of transactions. This may have been partially due to the relative stability of the M&A global market at that time, which gave companies the confidence to invest more freely abroad.  In addition large and small companies may have found that they were able to obtain both internal and external funding for M&A activity more easily.

During Q4 2007, the number of acquisitions fell to 87 transactions and this appeared to be the beginning of the downturn of outward investment by UK companies. Thereafter, M&A activity continued to decline until Q1 2009, after which the first signs of an upturn began to emerge. This gradual upturn of acquisitions abroad by UK companies continued through the quarters until Q3 2011 after which the number of acquisitions, once again, began to decline (see Figure 4).

Figure 4: Value and number of acquisitions abroad by UK companies

Figure 4: Value and number of acquisitions abroad by UK companies
Source: Office for National Statistics

Notes:

  1. * denotes disclosive figures.

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Between Q4 2011 and Q2 2012 the levels of outward M&A activity by UK companies declined considerably. This return to a downward trend may have arisen as a result of renewed concerns within the M&A market about the fragility of both the UK and global economic conditions. In addition the arrangements by banks for providing credit and funding to businesses during and after the financial crisis were tightened meaning companies were less likely to conduct M&A.

The number and value (12 transactions and £0.5 billion respectively) of outward acquisitions by UK companies at Q2 2013 were the lowest levels reported since Q1 1987, when ONS first began publishing quarterly M&A figures.

The following significant transactions took place abroad by UK companies in Q3 2013:

  • Melrose Industries Plc of the UK disposed of Marelli Motori S.p.A of Italy.

  • Melrose Industries Plc of the UK disposed of Truth Hardware Corporation of the USA.

  • Diageo Plc of the UK acquired United Spirits Limited of India.

  • Lupus Capital Plc of the UK acquired Truth Hardware Corporation of the USA.

Future significant transactions abroad by UK companies (outward transactions) may include Vodafone’s divestment of its 45% interest of Verizon Wireless to its joint venture partner Verizon Communications of the USA. External commentators have announced that this was concluded in Q3 2013. However this significant disposal did not legally complete until Q4 2013 and as a consequence the data for this transaction will be reported in the M&A outward data outputs for Q4 2013.

Vodafone UK Plc also announced it was to acquire full control of Germany’s biggest cable company, Kabel Deutschland. This transaction has still to meet the approval of the European Commission and while this is considered to be just a formality the actual completion date is anticipated to be in the first quarter of 2014. 

Background notes

  1. User Engagement

    We are constantly aiming to improve this release and its associated commentary. We would welcome any feedback you might have and would be particularly interested in knowing how you make use of these data to inform our work. Please contact us via email:  m&a@ons.gsi.gov.uk  or telephone Ciara Williams on +44 (0)1633 456455.

    Following the success of last year's business statistics user event a second all-day event, coordinated jointly with the Department for Business, Innovation and Skills (BIS), took place on 24 September 2013. The event, The Changing Shape of Trade and Investment in the UK, featured a range of talks from users, producers and suppliers of business trade and investment statistics, not just from central government and the devolved administrations, but also local government, media, business representatives and researchers. To view the content of the day, please visit Storify

  2. Basic Quality Information

    The Quality and Methodology Information for Mergers and Acquisitions(M&A) (300 Kb Pdf) surveys report describes in detail the intended uses of the statistics presented in this publication, their general quality and the methods used to produce them.

  3. Relevance to Users

    The degree to which the statistical outputs meet users’ needs.

    Within ONS, the mergers and acquisitions data are considered to be essential for producing Balance of Payments and economic accounts statistics. The survey results form important components of the UK Balance of Payments and Financial Accounts and are vital in the measurement of the financial and non-financial business sector accounts.

    The Cross-Borders Acquisitions and Mergers survey (M&A) data are used in the compilation of the estimates of Foreign Direct Investment (FDI). These data meet the needs of FDI by collecting data on all acquisitions which lead to a holding in excess of 10% of the issued share capital. These estimates then feed into the UK Balance of Payments and the 'Rest of the World' sector of the financial accounts in the National Accounts, for which there is an EU legal requirement. Individual transaction information is also used to estimate the counterpart in 'portfolio' investment flows for monthly Balance of Payments.
     
    The data collected are also used in updating business structures and country of ownership codes on the Inter-Departmental Business Register (IDBR).The IDBR is a comprehensive list of UK businesses that is used by government for statistical purposes.

    Elsewhere in government, examples of departments who use the data include:

    • HM Treasury, Economic Analysis Division, where the data are used in preparing briefing and forecasting;

    • Department for Business, Innovation and Skills, where direct investment data are required for ministerial briefing, parliamentary questions and in formulating trade policy;

    • UK Trade & Investment, where the information is used for briefing on the extent to which the UK is successful in attracting inward investment;

    • HM Revenue and Customs, where the data are used to help in forecasting company taxation.

    • UK embassies in foreign countries, which are interested in information on specific countries and companies making acquisitions.

    Non-government users include:

    • Private companies which are interested in analysing country and industry data for trends by foreign firms in the UK and by UK companies abroad and also for researching corporate finance activity and for the purpose of investment banking and

    • Private sector economists, journalists and academics who are interested in information on particular industries and particular countries for research purposes and who use the data for periodic statistical comparisons.

    Feedback from users has indicated that the information received from the M&A survey has a high degree of relevance across the above user groups, meets the vast majority of user needs, and all information currently collected and published is used.

    Source of data:
    The information collected is based on reports in the financial press, specialist magazines, company and financial websites supplemented by special surveys to businesses to determine the form, value and timing of each transaction.

    If the information is not yet in the public domain, such transactions may not be reflected in the analysis. Where full information has not yet been received on the details of the acquisition or disposal, the value of the transaction indicated in the public domain is used as an interim estimate.

    The data shown in this release relate solely to mergers and acquisitions undertaken by companies: acquisitions by individuals are not included.

    This publication contains data relating to mergers, demergers, acquisitions and disposals. Figures relating to mergers are included within acquisitions and those relating to demers are contained within disposals.

    ONS makes every effort to provide informative commentary on the data in this release. As part of the quality assurance process, individual businesses are contacted in an attempt to capture reasons for large period on period data movements. It can prove difficult to gather detailed reasons from some businesses to help inform the commentary. Frequently, reasons given for data movements refer to a ‘change in market conditions’ or a ‘restructure of the company’. Consequently, it’s not possible for all data movements to be fully explained.

    ONS are aware that a number of users make use of these data for modelling or forecasting purposes. In doing so, it is important that users make note of our revisions policy (see note 7 in the background notes) and that all time series are on a ‘current price’ basis, which means that the values are as they were at the time of measurement and not adjusted for inflation. Acquisitions and disposal activity can be affected by UK and global economic and political issues and therefore quarterly estimates can be volatile.

    One question often asked of the M&A release is ‘why is there a time delay between the announcement of M&A transactions in the press and the inclusion of these transactions within ONS M&A figures?’ The difference is that ONS figures record when a transactions legally completes as opposed to when the transaction has been announced in the press. The complexities surrounding the acquisitions/disposals taking place often incurs a time lag, which can vary between quarters.

    Tables 2 through to 7D, which contain the annual 2012 M&A estimates, will be updated when the M&A estimates for Q4 2013 are produced and will be published on 4 March 2014. 

  4. Significant Transactions

    Significant Transactions tables show the reported figures for a selection of significant transactions which occurred in the quarter, where ‘significance’ is defined as the absolute value of the deal.

    The figures shown are usually the ones available from the financial press or other sources in the public domain although occasionally, with the consent of the company, the value returned to the ONS is used in the tables instead of the press reported figure. If the company’s consent cannot be obtained then the deal is excluded, however, the values are included in the aggregate tables. Occasionally, therefore, a large deal may be missing (suppressed) from the lists so it is best to regard these tables as an indication of the ranking of deals rather than a completely exhaustive listing.

    Press reported figures for M&A transactions often differ to some extent from those supplied by companies to ONS and it is the latter which are used in compiling statistical aggregates in tables 1-10. Included in the prices quoted in the tables of significant transactions is the total published price paid for the company excluding any assumed debt where known. Deferred payments are included in the reported price even if the payment is made in a different quarter.

  5. Types of Transactions Covered

    Mergers are acquisitions in which all or part of the payment is made in shares, such that the shareholders of the two companies become shareholders of a new, combined company group.

    Demergers are disposals where a company group divides into two or more separate companies, in such a way that the shareholders of the restructured companies remain the same, or retain the equivalent value shareholding in one of the newly independent companies. Demergers are included in the statistics within disposals.

    Acquisitions are transactions which involve one company purchasing the ordinary shares of a second company (‘target  company’). A target company is usually of a smaller size than the company undertaking the purchase.

    Disposal is a term used to describe the action when a company or organisation sells or liquidates an asset or business. 

    Cross-border acquisitions denote transactions where a company in one country acquires, either directly or indirectly, a controlling interest in a company in another country.

    Direct transactions are those where a company acquires a controlling interest in another company.

    Indirect transactions are those where a company uses an existing foreign subsidiary to acquire a controlling interest in a company resident in another country. The acquiring foreign intermediate company may be located in the same country in which the acquisition is being made or in a different country.

    Acquisitions within the UK by other UK companies denote mergers and acquisitions involving only UK registered companies.

    Where the acquired company was a subsidiary of another company the transaction is classified as a sale between company groups.

    The phrase ‘acquisitions in the UK by UK companies’ refer to deals where the ultimate ownership remains in the UK. This heading does not cover the total number or value of deals where a UK company is the acquirer. When a foreign company acquires a UK company through one of its existing UK subsidiaries or a UK registered special purpose vehicle that deal is shown as part of the data under ‘acquisitions in the UK by foreign companies’.

    Acquisition of independent companies
    The acquisition of an independent company means the purchase of a company in its entirety – the company itself and all of its subsidiaries.

    Acquisition of subsidiary companies
    The acquisition of a subsidiary company means the purchase of part of a company.

  6. Financing

    This statistical bulletin provides details of the application of funds to effect mergers and acquisitions and the proceeds raised from disinvestments and demergers.

    For indirect foreign transactions there is the added complication of considering the movements of funds either as capital injection or in the form of loans between parent companies and their foreign subsidiaries making the acquisition. Occasionally, the foreign subsidiary obtains the funds required partly or entirely outside the UK from sources such as:

    • Own resources;

    • Borrowing from banks and other local sources;

    • Share, bond and other capital or notes issued abroad.

    Also, a transaction may be funded by more than one method.

  7. Revisions

    Data for Q1 and Q2 2013 have been revised in the light of new information, and so revisions to the data for Q1 and Q2 2013 have been published in this statistical bulletin. No further revisions to data prior to Q1 2013 have been made. Therefore time series data for all quarters of 2012 and any previous historic quarterly  and annual periods remain unchanged.

    Revisions to the aggregates used in M&A principally occur for the following reasons:

    • Completion of transactions: On announcement of a proposed transaction an expected completion date is usually given. The publicly reported values will be allocated to the quarter of expected completion. If the transaction is ultimately completed in an earlier or later quarter, the recorded values will be reallocated to the new quarter.

    • Publicly reported values: Publicly reported values are initially used to compile the aggregates. These can vary considerably from the values ultimately supplied by the respondents, frequently because the assumption of debt has been included in the publicly reported value. A nominal value is applied if no publicly reported value is available. The final values used to create the aggregates are those supplied by the respondent.

    • Non-completion of transactions: On announcement of a proposed transaction the publicly reported value of the transaction is recorded. If the transaction does not subsequently take place the recorded value will be deleted.

    • Non-share transactions: On announcement of a proposed transaction it may appear that there will be transactions in the share capital of the companies involved and the publicly reported values will be recorded. If subsequent information contradicts this the recorded values will be amended or deleted.

    • Control: On announcement of a proposed transaction it may appear that the transaction will give the purchasing company control of the purchased company, that is, a share ownership of greater than 50%. If subsequent information contradicts this the recorded values will be amended or deleted.

    • Revisions from respondents: Very occasionally respondents revise the values that they have previously supplied to ONS. The revised values are those used to create the aggregates.

    Definitions of geographic and economic areas

    Europe
    EU Austria Belgium Bulgaria
      Croatia Cyprus Czech Republic
      Denmark Estonia Finland
      France Germany Greece
      Hungary Irish Republic Italy
      Latvia Lithuania Luxembourg
      Malta Netherlands Poland
      Portugal Romania Slovakia
      Slovenia Spain Sweden
     
    Other European Countries Albania Andorra Belarus
      Bosnia and Herzegovina Faroe Islands Gibraltar
      Iceland Liechtenstein Macedonia, the Former Yugoslav Republic of
      Moldova Montenegro Norway
      Russian Federation San Marino Serbia
      Switzerland Turkey Ukraine
      UK Offshore Islands (Guernsey, Jersey, other Channel Islands & Isle of Man Vatican City State  
    The Americas      
      Anguilla Antigua & Barbuda Argentina Aruba
      Bahamas Barbados Belize Bermuda
      Bolivia Bonaire, Sint Eustatius & Saba Brazil British Virgin Islands
      Canada Cayman Islands Chile Colombia
      Costa Rica Cuba Curacao Dominica
      Dominican Republic Ecuador El Salvador Falkland Islands
      Greenland Grenada Guatemala Guyana
      Haiti Honduras Jamaica Mexico
      Montserrat Nicaragua Panama Paraguay
      Peru St Kitts & Nevis Saint Lucia Sint Maarten
      St Vincent & the Grenadines Suriname Trinidad & Tobago Turks & Caicos Islands
      Uruguay US Virgin Islands USA Venezuela
             
    Asia        
      Afghanistan Armenia Azerbaijan Bahrain
      Bangladesh Bhutan Brunei Darussalam Burma/Myanmar
      Cambodia China Georgia Hong Kong
      India Indonesia Iran Iraq
      Israel Japan Jordan Kazakhstan
      Kuwait Kyrgyzstan Laos Lebanon
      Macao Malaysia Maldives Mongolia
      Nepal North Korea Oman Pakistan
      Palestinian Territory Philippines Qatar Saudi Arabia
      Singapore South Korea Sri Lanka Syria
      Taiwan Tajikistan Thailand Timor - Leste
      Turkmenistan United Arab Emirates Uzbekistan Viet Nam
      Yemen      
             
    Australasia & Oceania      
      American Samoa Antarctica Australia Bouvet Island
      Christmas Island Cocos (Keeling) Islands Cook Islands French Polynesia
      French Southern & Antarctic Lands Fiji Guam Heard Island & Macdonald Islands
      Kiribati Marshall Islands Micronesia, Federated States of Nauru
      New Caledonia New Zealand Niue Norfolk Island
      Northern Mariana Islands Palau Papua New Guinea Pitcairn
      Samoa Solomon Islands South Georgia & South Sandwich Islands Tokelau
      Tonga Tuvalu US Minor Outlying Islands Vanuatu
      Wallis & Futuna      
    Africa        
      Algeria Angola Benin Botswana
      British Indian Ocean Territory Burkina Faso Burundi Cameroon
      Cape Verde Central African Republic Chad Comoros
      Congo Democratic Republic of the Congo (Zaire) Djibouti Egypt
      Equatorial Guinea Eritrea Ethiopia Gabon
      Gambia Ghana Guinea Guinea Bissau
      Ivory Coast (Cote d'Ivoire) Kenya Lesotho Liberia
      Libya Madagascar Malawi Mali
      Mauritania Mauritius Morocco Mozambique
      Namibia Niger Nigeria Rwanda
      Sao Tome & Principe Senegal Seychelles Sierra Leone
      Somalia South Africa South Sudan St Helena, Ascension & Tristan da Cunha
      Sudan Swaziland Tanzania Togo
      Tunisia Uganda Zambia Zimbabwe

    Table source: Office for National Statistics

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    Data quality

    Table B: Average revisions over the previous five quarters

    £ million
      Value in Latest Revised Period (Q2 2013) Average Revision  Average Revision (%) Average without Regard to Sign1
    Value of Outward Acquisitions  561.0 898.8 160.2 541.0
    Value of Outward Disposals  2,010.0 549.8 27.4 733.8
    Value of Inward Acquisitions 23,747.0 219.2 0.9 284.0
    Value of Inward Disposals  531.0 242.8 45.7 111.0
    Value of Domestic Acquisitions 2,108.0 421.0 20.0 489.3

    Table source: Office for National Statistics

    Table notes:

    1. Average absolute revision.

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    Table C: Average revisions over the previous five quarters

      Number in Latest Revised Period (Q2 2013) Average Revision 
    Number of Outward Acquisitions  12.0 7.4
    Number of Outward Disposals  12.0 4.2
    Number of Inward Acquisitions  33.0 5.6
    Number of Inward Disposals  7.0 1.0
    Number of Domestic Acquisitions  64.0 10.2

    Table source: Office for National Statistics

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    Analysing average revisions between provisional and final estimates can provide an indication of reliability in an initial statistic. Provisional statistics may be based on less information than is available for final statistics as they have been processed more quickly to meet the demand of customers. By looking at these average revisions it can help us determine whether revisions are being made consistently in one direction. For example, if early estimates are consistently under or overestimating the later figures. A test is subsequently performed on these average revisions to determine if they are statistically different from zero. Revisions that are not statistically significant imply that an average revision might be non-zero simply through random effects.






     

  8. Table D: Response Rates

    Cross-border mergers and acquisitions: Outward
    Statistics of sample size – latest survey conducted:
    Reference period Q2 2013 Q3 2013
    Response rate (%) 94.4 100
         
    Cross-border mergers and acquisitions: Inward
    Statistics of sample size – latest survey conducted:
    Reference period Q2 2013 Q3 2013
    Response rate (%) 87.8 82.5
         
    Domestic mergers and acquisitions (DAM)
    Statistics of sample size – latest survey conducted:
    Reference period Q2 2013 Q3 2013
    Response rate (%) 93.6 84.1

    Table source: Office for National Statistics

    Table notes:

    1. Previous quarter has been revised, latest quarter is provisional.

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  9. Notes to Tables

    The deal identification threshold was increased at Q1 2010 to a value of £1.0 million from a previous value of £0.1 million. As a consequence there is a discontinuity in the value and number of deals reported from Q1 2010 onwards compared with previous periods.
    Symbols used in the tables are:

    .. Figure suppressed to avoid disclosure of information relating to individual enterprises.
    – Nil or less than half the final digit shown.

    The sum of constituent items in tables may not always agree exactly with the totals shown due to rounding.

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    The UK Statistics Authority has reviewed this publication in its report: “Assessment of compliance with the Code of Practice for Official Statistics”: Statistics of International Transactions, which was published on 8 December 2011. This review recommended that the Mergers and Acquisitions estimates be designated as National Statistics, subject to ONS carrying out certain requirements. ONS met all of these requirements on 3 May 2013.

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Statistical contacts

Name Phone Department Email
Ciara Williams +44 (0)1633 456455 Business Outputs and Developments Division m&a@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
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