Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

UK firms double money for foreign acquisitions

Roger Trapp
Monday 12 April 1993 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

UK COMPANIES spent more than twice as much on foreign companies in the first quarter of this year as they did in the same period of 1992, according to figures from KPMG Peat Marwick, the accountants and management consultants.

Although the number of deals dropped from 92 to 80, the value leapt 147 per cent, from dollars 1.9bn ( pounds 1.3bn) to dollars 4.7bn.

The increased UK activity was echoed to a lesser extent in North America. While the United States saw the worth of cross-border purchases fall slightly from dollars 1.9bn in the first quarter of 1992 to dollars 1.7bn this year, Canadian companies spent 350 per cent more - on 18 deals worth dollars 997m.

However, there was a general decline in cross-border deals around the world. They fell 37 per cent to dollars 11.6bn in the first three months of 1993 from dollars 18.3bn last year. This total was a 28 per cent drop compared with the final quarter of last year, when KPMG's Deal Watch recorded 517 deals worth dollars 16bn.

Richard Agutter, KPMG head of mergers and acquisitions, said: 'There is always pressure to finalise deals before the end of the year. So it is not unusual to see a drop in the first quarter. However, the fall this year also reflects difficult political and economic circumstances, particularly in Europe.'

The most active industries by value were chemicals and pharmaceuticals, which accounted for 36 deals worth dollars 2.8bn.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in