Scotland fails to match UK M&A activity

Scotland missed out on an expansion of merger and acquisition activity in the UK last year, with the value of corporate deals slumping by 39 per cent north of the Border.

Figures released yesterday revealed that the total value of mergers, acquisitions, flotations, rights issues and share placements in the UK was £229 billion for 2011, an increase of 11 per cent on 2010.

The number of deals remained fairly constant, dropping by only 2 per cent, according to the data compiled by credit reference agency Experian.

But in Scotland, last year saw 317 deals worth £14bn, down from 381 agreements totalling £23bn in 2010.

The decline came despite large moves such as the sale of the well support division of Wood Group, which topped the value table at £1.75bn, the £755 million investor buy-out of Forth Ports and the sale of Clyde Union for £750m.

Jane Turner, research manager at Experian, said it was difficult to say why volume and value in Scotland had decreased. How-ever, it could be that transactions are simply not being disclosed because of a greater demand for confidentiality, she said.

Eversheds was the most active legal adviser in Scotland, with an involvement in 12 deals in 2011. In terms of value, Allen & Overy led the way in the legal field with a total £2.7bn worth of deals.

Credit Suisse was the leading financial adviser in value terms with £4.8bn worth of transactions Scotland last year.