Emerging markets UK spending spree

Emerging markets went on a UK spending spree last year.

China leads the way Tonyv3112/Shutterstock

The UK was a hot spot for emerging market buyers in 2012 with China the top investor investing $4.6 billion in 11 deals and doubling its expenditure by almost 400 per cent. According to a report by  law firm Freshfields Bruckhaus Deringer, emerging market buyers upped their M&A spend in the UK by 60 per cent to $8.6 billion, up from $5.3bn the previous year.

Piers Prichard Jones, corporate partner at Freshfields said of the figures: ‘The UK has proven an attractive target in what was a subdued year for mergers and acquisitions globally. The quality of UJ assets and branks, combined with favourable valuations preceding the recent rally in equity markets and a less protectionist regime than some other jurisdictions, have lured investors from emerging markets.’

Commodities

Oil and gas was the most attractive sector for investment globally with emerging market companies pouring $18.9 billion into the sector for 63 deals.  This was, however, lower than that in 2011. Meanwhile food and beverage globally saw over $8bn investd  over 44 deals with $2bn for UJK deals.

 

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