Citi UK CEO Reports 28 M&A Deals in 2023 Driven by Large Caps

U.K. M&A activity is increasing, with 28 transactions announced in 2023 targeting cash-generative assets. Citi U.K. CEO Tiina Lee noted a push by major companies to simplify and focus on core operations. Despite a 12% decline in the number of deals last year, total deal value rose by approximately 12%, with average deal size increasing by 30%. This trend contrasts with a quieter IPO market, with only a few listings and a significant valuation gap between U.K. and U.S. firms, making British companies attractive to foreign investors.