A year to remember as 1997 tops merger record

There were record numbers of acquisitions and mergers by UK companies in continental Europe, with many larger deals driven by the growing trend of being a global organisation.

According to figures published by Acquisitions Monthly, UK firms spent #8.7 billion on continental buyouts, an increase on last year's figure of #6.5 billion. The number of deals totalled 266, the highest since 1990 when 298 took place.

The magazine highlighted that the rise of acquisitions was driven by the need to have wider coverage on a global scale in order to offer a standard service across its branches.

European-based firms also increased the number of acquisitions in the UK, rising to #7.1 billion - up from #4.8 billion in 1996. It was also a record year for US acquisitions in the UK as US firms invested #14.5 billion on 228 UK firms.

The value of UK acquisitions in the US fell to $9.2 billion in 1997 from $39.4 million the previous year, failing to see any billion dollar acquisitions of US companies by UK bidders.

But the number of acquisitions in the UK was down on last year with 1,299 taking place, valued at #33.9 million, compared with 1996 figures of 1,312 which totalled #32.9 million.

There were also record numbers of global mergers and acquisitions as the figures showed the actual number of deals completed worldwide in 1997 rose to 13,857 totalling #829 billion, compared with 12,320 deals worth #650 billion for 1996.

The number of UK companies that acquired in the EU rose to 246 totalling #6.3 million, up from 1996's figure of 227 which totalled #6.1 million.

In August, Acquisitions Monthly stated that EU countries were investing more money in acquisitions but that the strength of sterling was causing businesses to be cautious about potential buyouts.