June 30, 2016

By Everitt Newton & Justin Zeth

$72.9bn: UK targeted M&A volume in 1H 2016

UK targeted M&A volume in the first half of 2016 ($72.9bn) is the lowest 1H level since 2011 ($67.1bn). Volume has dropped 63% year‐on‐year from 1H 2015 ($194.8bn), which is the third highest 1H volume on record after 2000 ($348.1bn) and 2007 ($255.2bn). 2015 marked the second biggest annual total on record for UK M&A, with $436.8bn announced over the year, surpassed only by 2000 ($485.2bn)

2Q 2016 ($25.3bn) has recorded a significant drop from 1Q 2016, down 47% to the lowest quarterly total since 2Q 2013 ($21.5bn). 35% of 1H 2016 UK M&A volume has been announced in 2Q 2016, compared to an average 1H share of 50% since 2Q 2011

$14.3bn: Deutsche Boerse / LSE respond to Brexit

In February 2016, Deutsche Boerse announced a $14.3bn plan to merge with the London Stock Exchange Group. Following the Brexit results on June 24, 2016, the two exchange groups announced that the success of the merger would not be dependent on the outcome of the referendum. If completed, it will be the second largest European inbound acquisition of a UK finance company on record

2015 included record breaking deals between SABMiller/Anheuser‐Busch InBev ($117.4bn, pending) and BG Group/Royal Dutch Shell ($66.0bn, completed). The deals are the biggest and third largest UK M&A transactions on record, respectively

$53.7bn: UK targeted inbound M&A

Inbound deals total $53.7bn in 1H 2016, accounting for 74% of total UK targeted M&A, compared to an 81% share ($158.1bn) in 1H 2015

Domestic deal volume has dropped 48% in comparison, to $19.1bn, the lowest half year total on record. Only 2 of the top 10 UK targeted M&A dealsin 1H 2016 are domestic transactions

BAML top UK M&A advisor in 2016 YTD

Bank of America Merrill Lynch leads the UK M&A advisory ranking in 2016 YTD with $35.2bn followed by Goldman Sachs and Deutsche Bank with $34.6bn, and $28.8bn, respectively. Three UK banks rank in the top 10; Barclays, HSBC, and Robey Warshaw