Daniel Black
Hello,
As expected, the Bank of England cut interest rates by 0.25% to 4.5% this week, marking the third drop in borrowing costs in the current cycle. Notably two policymakers voted in favour of a bigger 0.5% cut, which suggests we won’t have to wait long for rates to fall even further.
Will this help stimulate more M&A activity in H1? That remains to be seen, but it’s certainly welcome news after the ongoing drama around US tariffs.
Elsewhere in our roundup of UK M&A news this week:
- European M&A increased 17.5% in 2024 according to PitchBook
- The FTSE 100 hit another record high
- De La Rue is up for sale after receiving multiple approaches
Enjoy the read and connect with me on LinkedIn.
Deal Tracker
Our weekly roundup of all the confirmed M&A deals in the UK.
The Rumour Mill
- Global PE assets hit record £8.7 trillion
- The Bank of England cuts its key interest rate by 25 basis points to 4.5%, its first rate reduction of the year.
- The BoE also lowered its economic growth forecast, citing risks from global factors such as US tariff threats.
- Following the announcement, the pound fell by more than 1% against the dollar.
- Today’s FTSE 100 record high comes almost five years after the markets crashed at the start of the Covid-19 pandemic
- UK must ‘learn lessons’ from rival finance hubs such as Saudi Arabia and UAE, says Investment Association boss
- Ascot Lloyd stops one of its acquisition models after concerns about potential conflicts of interest
- Wealth manager Shackleton is sounding out potential bidders a month after rebranding from its previous name, Skerrits
- Willis Towers Watson pivots to M&A after hitting profit targets
- US and UK private equity targets Emerald Isle for M&A opportunities
- Diageo scraps its mid-term growth targets amid warnings that US tariffs could cost the cost company £161m in profits
- BBGI Global Infrastructure agrees to a £1.06bn takeover bid from Canada’s British Columbia Investment Management Corporation (BCI) for the infrastructure investment trust
- Elliott Management built stake of over £300m in Smiths Group ahead of company’s break-up announcement
- Vodafone CEO Margherita Della Valle praises the UK’s CMA for its progressive approach, ahead of EU, highlighting the approval of Vodafone’s £16.5bn merger with Three UK
- BP poised to invest up to £20.2bn in Iraq’s Kirkuk oil and gas
- BP to explore sale of Gelsenkirchen oil refinery in Germany
- AstraZeneca shares rise as China probe update reassures
- The CMA should be nudged on antitrust, not bullied – John Gapper
- Fevertree shares soar after Molson Coors takes stake
- ITV and RedBird IMI are in early-stage talks to merge production businesses
- De Beers finalises talks with Botswana government regarding a rough diamonds sales deal and an extension of mining licences for their joint venture, Debswana, until 2054
- Meanwhile, Anglo American expects to take another writedown on De Beers operations due to weak diamond sales, particularly in China
- UK-Backed Pension Nest is set to take 10% stake in Australia’s IFM
- Worldpay agrees to acquire fraud detection tech firm Ravelin
- Team Internet is ongoing talks with Verdane Fund Manager, which is considering a potential takeover offer for 125 pence per share in cash, valuing the company at £315.1m
- De La Rue starts formal sale process amid multiple takeover interest
- Ground Rents Income Fund rejects a fifth acquisition offer from Victoria Property Holdings
- Howden is in talks to acquire insurance broker Risk Strategies
- Miller agrees to acquire reinsurance broker AHJ Holdings
- IK Partners to invest in HSL Compliance
- Marlin invests in anti-money laundering platform Napier AI
- A2A paytech Vyne is set to wind down UK operations
Salaries and bonuses
- Evercore’s pay: $829k. Higher salaries, higher bonuses, more MDs
- UBS is slowing its cost cutting, but bonuses may disappoint
Job moves
- JPMorgan UK private banking boss Oliver Gregson exits
- Brevan Howard’s portfolio managers are arriving at Deutsche Bank and Citadel
- Citigroup shifts its head of India Khullar to London to co-head coverage of financial sponsors
- JPMorgan hires a Goldman Sachs dealmaker Jonathan Slaughter to bolster its coverage of the business services sectors in Europe
- UBS cuts 60% of planned Credit Suisse costs as 4,200 employees depart
- AllianzGI’s global investments head Deborah Zurkow to retire
- Cinven taps Carlyle Group European Healthcare co-head as new partner
- Nordic Capital adds four new partners to leadership team
- Hogan Lovells adds five Corporate & Finance Partners in Italy
- Summit makes eight promotions across its global team
- Ares Management appoints deVeer and Jacobson as co-presidents
- Moneyhub appoints Broadridge GM Alastair McGill as new CEO
- UK challenger Starling Bank appoints Joe Gordon as new COO
- Lloyds Banking Group appoints Dr Magdalena Lis as head of responsible AI
- William Vereker to step down as Santander UK board chair this year
- European Women Payments Network reshuffles leadership
- Maria Ramos to succeed José Viñals as Standard Chartered group chair
Market Trends
M&A rebounds in 2024
New data from PitchBook reveals there was a 14% uptick in global M&A deals last year, with values increasing 19% to around $3.7 trillion. The Global M&A Trends Report 2024, produced in partnership with Ideals, shows that European M&A saw a 29.2% YoY rise in value and a 17.5% increase in deal count.
European spacetech M&A blasts off
MergerMarket reports that Europe’s spacetech M&A climbed to £2.2bn in 2024, up from £1.66bn in 2023. Rising geopolitical tensions and defence spending are driving investment, with NATO members under mounting pressure to secure sovereign defence capabilities.
Meanwhile, Trump’s return to the White House is expected to accelerate US space dominance, with SpaceX playing a key role — its expansion and deep ties to the US government could push Europe into strengthening its own efforts.
Stalled deals to fuel a European M&A comeback in 2025
After years of tough market conditions, the European M&A scene is set for a wave of deals as over 300 stalled auctions – so called “Missing in Auction” (MIA) deals – from recent years re-enter the market.
Failed sales, particularly from 2022 and 2023, are creating opportunities for refinancing, relaunches and secondary deals as funds face expirations and sponsors seek exits. PE giants like Equistone and Triton, which saw multiple MIA deals, are leading the resurgence.
AI’s thirst for energy is driving M&A
AI continues to shape the European M&A landscape, and energy deals are no exception. As demand for AI-powered data centres grows, so does the need for energy to fuel them, driving significant investment opportunities.
With the sector’s deal volumes already up 44% YoY to £66bn, there’s no slowdown in sight for 2025. Major player Iberdrola, which boosted global renewables output by 5% YoY in 2024, is leading the charge, seeking up to £8.4bn investment in the data centre sector, with already £1.7bn valued in assets.
Fundraising
- Alchemy Partners closes Alchemy Special Opportunities Fund V at £0.83bn
- Mayfair moves down in fund size with £500m close
