Motives for cross-border mergers and acquisitions: perspective of UK firms [Book chapter]

Cross-border mergers and acquisitions (CBM&As) have become the dominant means of internationalisation, accounting for approximately 60 pre cent of all foreign direct investment inflows (Hopkins, 1999). Consistent with this, cross­border acquisitions now represent over 25 per cent of all global M&A transactions, a considerable rise from the 15 per cent often years ago (Schoenberg and Seow, 2005). According to Thomson Reuters, firms invested almost $3,500 billion in M&As in 2014 - a significant increase since 2008 (Forbes, 2015). Cross-border M&A activity by UK firms was volatile between 2008 and 2013. During 2008 and 2009 the number of acquisitions made abroad by UK companies fell by 60 per cent, from 298 acquisitions reported during 2008 down to 118 transactions reported at the end of 2009. At the end of 2013, the number of outward acquisitions decreased by 59 per cent, falling from 112 acquisitions reported during 2012 to 50 acquisitions at the end of 2013 (ONS, 2014)