Strategic buyers drive 67% of UK deal value in first half, sidelining private equity with stock-funded megadeals.
UK mergers and acquisitions value hit £178.9 billion in the year to July 7, annualizing to a record £347 billion. The total surpasses the previous high of £309.2 billion set in 2015, driven by corporate buyers leveraging stock financing options unavailable to private equity sponsors.
The top 10 deals accounted for 52% of total M&A value, with eight of the largest transactions led by strategic acquirers. McCormick’s $44.8 billion merger with Unilever’s food business and Engie’s £10.5 billion acquisition of UK Power Networks topped the list. Private equity’s share of deal value fell to 33.1%, the second-lowest since 2014, and just 15.1% of the top 10 deals.
Financing structures favored corporates, with two-thirds of McCormick’s Unilever deal funded via stock. Private equity firms, including EQT and TDR Capital, secured only two of the top 10 deals, totaling £13.99 billion.