Market Tracker Trend Report: Trends in Public M&A in Q3 2020

Market Tracker Trend Report: Trends in Public M&A in Q3 2020
Lexis®PSL Corporate and Market Tracker has conducted research to examine the current trends in UK public M&A for the period 1 July  2020 to 30 September 2020.

 

Background and approach

Lexis®PSL Corporate and Market Tracker has conducted research to examine the current trends in respect of UK public M&A. Data for this report has been sourced from the Market Tracker transaction data analysis tool which allows users to access, analyse and compare the specific features of numerous corporate transactions. This is an update to our Market Tracker trend report—trends in UK public M&A deals in H1 2020 in which we examined firm and possible offers announced in the first half of 2020.

For the purposes of this update we analysed the period between 1 July 2020 to 30 September 2020 (Q3 2020).

We reviewed a total of 30 transactions involving Main Market and AIM companies that were subject to the Takeover Code (Code): 12 firm offers, 15 possible offers and three announcements of formal sale processes (FSPs).

The percentages included in this report have been rounded up or down to whole numbers, as appropriate. Accordingly, the percentages may not in aggregate add up to 100%.

The final date for inclusion of developments in this report is 30 September 2019. Reference has been made to developments after this date if considered noteworthy.

Deal highlights

After depressed levels of public M&A in H1 2020, deal activity increased significantly during Q3 2020. Key highlights included:

• 12 firm offers (Q1 2020: 8 firm offers; Q2 2020: 4 firm offers)

• £10.1bn aggregate deal value (Q1 2020: £2.4bn; Q2 2020: £271m)

• £839m average deal value (Q1 2020: £297m; Q2 2020: £68m)

• Four £1bn plus transactions, including GardaWorld’s £3bn hostile offer for G4S

• 75% of firm offers were public to private transactions (H1 2020: 67%)

• 58% of firm offers made by non-UK bidders (H1 2020: 50%) 

Deal volume and deal value

In our H1 2020 public M&A trend report we commented on the significant reduction in public M&A deal activity, which was widely attributed to the

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About the author:

Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.