Strategic mergers and acquisitions ‘to increase in 2011’

Posted 24/03/2011

Companies will be taking part in more strategic mergers and acquisitions this year than they have been doing during the global economic downturn.

This is according to KPMG, which looked at transport and logistics companies and found that the recession forced many firms to strip out internal costs.

James Stamp from KPMG said he thinks UK businesses in all sectors will follow this trend and will make only profitable acquisitions.

“Many companies will be switching their focus externally again. This is helped by the fact that the outlook for financing opportunities started to brighten during 2010 and into early 2011,” he added.

However, Mr Stamp warned that a sudden spike on oil prices could disrupt mergers and acquisitions strategies again, throwing companies back into cash saving and survival mode.

Earlier this month, figures from the Office for National Statistics found that mergers and acquisitions activity increased during the final quarter of 2010.