Food and drink deals, particularly the acquisition of Weetabix by China’s Bright Food Group, dominated large-scale merger and acquisition activity in the UK in 2012, a new report by Experian shows.
Food and drink was the most active sector in large M&A deals in the UK last year, accounting for 15.4% of transactions by value, Experian said today (7 January). Bright Food’s GBP1.2bn (US$1.9bn) deal for Weetabix topped the list, alongside drinks firm Diageo’s GBP1.3bn deal for stake in United Spirits.
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Experian analysts said the UK held up well against other European countries in terms of M&A activity during the year. “Despite the challenges faced by the Eurozone crisis, the UK has proven to be one of the most attractive markets in what has been a subdued year for mergers and acquisitions globally,” said Experian’s business development manager for the UK and Ireland, Wendy Driver.
Still, the UK’s overall number of mergers, acquisitions, flotations, rights issues and placements announced fell by 3% in 2012 versus the previous year, to 4,543.
Mid-sized transactions were worst affected, while private equity had a quiet year, the analysts said. There was, however, a 15% rise in the number of deals worth more than GBP1bn, to 39.
