Cross-border deals fall 53% to £1.36bn in North West

Companies in the North West of England showed continued appetite for cross-border transactions in the first half of 2019, with 22 firms in the region acquiring overseas targets in this time, according to new statistics from Deloitte. 

However, Deloitte’s latest Cross Border Deals Radar revealed that whilst the number of outbound deals remained stable – just one fewer than last year – only 21 investments were made by overseas buyers of North West assets.

This brought the total number of cross-border deals in the first half involving North West firms to 43 – down from 66 during the same period of 2018.

Conducted in partnership with Experian MarketIQ, the research revealed that the value of transactions also fell, with £1.36 billion worth of deals reported in H1 2019.

By comparison, the first half of 2018 saw almost £2.9 billion of transactions as overseas companies looked to secure a North West base.

Notable deals in the first half of 2019 include Cheshire-based Ineos Enterprises Group’s £526 million acquisition of The North American Business of National Titanium Dioxide Company, and City Football Group’s addition of Chinese football club Sichuan Jiuniu FC for an undisclosed fee.

About 40% of deals involved a US-based company.

Behind this only Sweden, Australia (both three), New Zealand, Jersey, France and Canada (all two) saw multiple transactions.

The North West’s manufacturing sector proved most active in the M&A market with one third of the total deals involving companies in the industry.

This included Delaware-based food processing manufacturer John Bean Technologies Group’s acquisition of Proseal UK for £220 million in April.

Olly Tebbutt, partner at Deloitte in the North West said: “While overall investment has decreased compared to the first half of last year, a strong showing by North West firms acquiring overseas assets demonstrates the ambition of the region’s companies to expand internationally.

“Political and economic uncertainty has created a lull in inwards investment, although once resolved one way or another, we expect the region to regain its status as an attractive proposition for international companies.

“The broad range of global markets targeted by North West firms, and the diversification of this range compared to last year, is of interest.

“The global ambitions of the North West’s firms are evident through increased investment in the US and Asia.”