ONS data on UK M&A activity: Comment from corporate lawyer
New data from the Office for National Statistics (ONS) has been published to paint a picture of UK activity in mergers and acquisitions (M&A) between January and March 2026.
It shows there was a reduction in the number of M&A transactions involving a change in majority share ownership compared to Q4 2025, down from 495 to 352.
The value of inward M&A (foreign companies acquiring UK businesses) was £14.2bn during Q1 2026 – £18.8bn lower than the £33bn figure recorded in Q4 2025. The value of domestic M&A also dropped from £1.9bn to £1.5bn during the same period.
However, outward M&A (UK companies acquiring foreign firms) increased from £3bn to £4.7bn.
Richard Cox, Partner and head of the national corporate team at UK and Ireland law firm Browne Jacobson, said: "The latest ONS figures paint a mixed picture for UK M&A activity. While inward investment softened during the quarter, UK companies increased their acquisition activity overseas, highlighting that strategic dealmaking remains a priority despite ongoing economic and geopolitical uncertainty.
"It's important not to draw too many conclusions from a single quarter's data. M&A activity can be heavily influenced by the timing of a small number of large transactions, so quarterly figures often reflect short-term market dynamics as much as longer-term trends. Taken in the round, the data suggests that dealmakers remain active, but highly selective about where they deploy capital.
"From a legal perspective, we're continuing to see buyers place greater emphasis on valuation discipline, regulatory approvals and execution risk. At the same time, the increase in outward M&A indicates that many UK businesses are looking internationally for growth opportunities, whether through access to new markets, technologies or capabilities.
"Looking ahead, a sustained recovery in deal activity is likely to depend on greater economic certainty, improving financing conditions and confidence around valuations. Until then, we expect strategic transactions to continue, but with investors remaining focused on high-quality assets and clear commercial rationale."
Contact
Dan Robinson
PR & Communications Manager
Dan.Robinson@brownejacobson.com
+44 0330 045 1072
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