Cross border deals completed by Midlands companies up 142% year-on-year, says Deloitte

  • Outbound cross border deals from Midlands-based companies increase 142% from Q1 2021 to Q1 2022
  • Nottinghamshire leads regional outbound deals in Q1 2022 with 5 deals completed
  • Swedish and German companies complete 45% of Midlands inbound deals in Q1 2022

Between March 2021 and April 2022, the number of outbound deals completed by Midlands-based companies has more than doubled, according to Deloitte’s Cross Border Deals Radar.

The research, which tracks inbound and outbound transactions between investors and corporates in the Midlands and overseas, reveals that there has been significant year-on-year growth in the volume of outbound deals in the region. The Midlands saw 58 deals being completed between Q2 2021 and Q1 2022 - compared with just 24 deals in the 12 months prior.

In Q1 2022, Midlands-based companies completed eight acquisitions of overseas companies, behind London (63), South West England (47), and South East England (17).

Nottinghamshire led the way for outbound deals in the Midlands in the first quarter of the year, with five out of the eight Midlands outbound deals coming from the county. The other three deals were based in Leicestershire and Worcestershire.

The increase in outbound deals in the Midlands is in-line with the national trend. In total, 161 outbound deals completed from the UK Q1 2022, higher than any other quarter over the past five years.

In terms of inbound investment, the Midlands has been relatively stable year-on-year. In total, 57 inbound deals were completed in the last 12 months, and similarly 55 were completed in the 12 months previous.

Swedish and German companies have led inbound investment into the Midlands in Q1 2022, completing deals for five of the six Midlands companies that have been bought by overseas investors. This interest from Sweden has continued from 2021, when Swedish investors completed more cross-border deals in the Midlands than any other country, into local organisations.

“It will be interesting to see how cross-border investment trends change throughout the remainder of this year, given the number of variables currently at play in the UK and overseas. Inflation, higher interest rates, energy price rises and supply chain challenges could all contribute to a decrease in deal activity in the coming months, which Deloitte will be keeping a close eye on.”