2014 looks to be off to a flying start as the UK leads the way in merger and acquisition activity in Europe. Companies are expected to increase spending on so-called mega mergers that are valued at more than $10bn (£6.1bn) as the economic recovery encourages more firms to make large acquisitions. Bankers are growing increasingly confident about the outlook for deal making this year.
In 2013, deals worth over $10bn were few and far between, the most notable being the UK’s telecom operator Vodafone’s $130bn blockbuster deal with Verizon Wireless. It has been dubbed by bankers as one of the biggest catalyst for so-called “domino deal”. It looks as if these large transformational deals are set to become popular again as major companies look to expand into new business areas with big acquisitions.