The value of mergers and acquisitions (M&A) involving UK companies increased in the first quarter of 2025, according to provisional data from the Office for National Statistics (ONS). Both inward and outward M&A values reached their highest levels since late 2022, primarily due to a few large transactions rather than an increase in the overall number of deals. In total, 395 domestic and cross-border M&A transactions resulting in a change of majority ownership were recorded between January and March 2025. This figure is lower than the 497 deals completed in the final quarter of 2024. Monthly transaction volumes fluctuated, with 148 deals in January, a decrease to 103 in February, and a subsequent rise to 144 in March. Inward M&A—foreign acquisitions of UK companies—reached a provisional value of £19.2 billion, up from £4.0 billion in the previous quarter and marking the highest level since the third quarter of 2022. Notable transactions included the acquisition of DS Smith PLC by International Paper Company (USA), Britvic PLC by Carlsberg A/S (Denmark), and AGS Airports Holding Ltd by the Public Sector Pension Investment Board (Canada). Outward M&A—UK companies acquiring foreign businesses—was valued at £9.4 billion, a significant increase from £1.8 billion in the previous quarter and the highest level since late 2022. A key transaction was Rio Tinto PLC’s acquisition of Arcadium Lithium PLC (Jersey). Domestic M&A—deals between UK companies—totaled £2.9 billion, lower than both the previous quarter (£6.4 billion) and the same period last year (£3.2 billion). A major domestic acquisition in the quarter was the Coventry Building Society’s acquisition of The Co-Operative Bank Holdings Limited. The number of transactions also declined across categories: 167 inward deals were completed in the first quarter, compared to 189 in the previous quarter; 71 outward deals were recorded, down from 77; and 157 domestic deals were completed, a decrease from 231. The Bank of England’s summary of business conditions for the first quarter noted that firms were facing increasing financial pressures and cautious investment behavior, influencing M&A activity. Although there are signs of improvement in M&A activity, growth remains constrained.