The latest Mergers and Acquisitions (M&A) data from the Office for National Statistics (ONS) reveal a depressing landscape for UK companies. Foreign acquisitions of UK companies soared in value to £25.4 billion, up £9.7 billion from Q1 2026 and £15.7 billion higher than Q2 2025, highlighting how cheap UK company valuations are compared to foreign markets.
This compares with only seven companies listing in London so far this year. The domestic UK M&A landscape is a mixed one. On the one hand, UK-on-UK deals rose in value to £4.2 billion, more than doubling from £1.8 billion in Q1 2026. On the other, the number of domestic transactions dropped to 130, down from 142 in the previous quarter and much lower than the 241 recorded in Q2 2025.
The UK deal value of £4.2 billion compares poorly to foreign investment in the UK (£25.4 billion).
Outward UK investment saw a major decline, falling to £2.7 billion from £4.1 billion in Q1, but was only £1 billion lower than the previous year’s second quarter.
The ONS cautions that these figures are provisional and subject to revision, but the data points to a market shaped by volatility and a few high-value deals. Inward M&A values were buoyed by several large acquisitions, while the number of transactions, both inward and domestic, continued a downward trend. Outward M&A, meanwhile, reflected a more cautious approach by UK firms to overseas expansion.
The Bank of England’s June 2026 summary highlighted subdued investment intentions, citing the ongoing Iran conflict, heightened uncertainty and tighter financing and tax conditions as factors dampening business appetite for new projects.
The ONS’s M&A statistics only include deals worth £1 million or more that result in a change of ultimate control.
With global uncertainties and domestic economic pressures persisting, the outlook for UK M&A remains mixed.
To read the ONS research, see here: https://www.ons.gov.uk/businessindustryandtrade/changestobusiness/mergersandacquisitions/bulletins/mergersandacquisitionsinvolvingukcompanies/apriltojune2026
