Conclusion

Our analysis identifies a significant relationship between U.S.–U.K. M&A and U.K. output, while our survey shows that the value created inside acquired businesses can continue through revenue growth, productivity, hiring, and investment after completion.

However, the future economic dividend will depend on a continuing pipeline of cross-border investment. The appetite for transatlantic M&A is strong. The main hurdle is execution. Cross-border differences in regulation, deal mechanics, and integration do not necessarily stop transactions, but they can affect valuation, timing, and certainty if they are discovered too late. The evidence in this report suggests they are usually manageable with the right preparation.

That leaves a clear challenge on both sides of the deal. The CMA has committed to offering faster, more transparent and more predictable processes to reduce business uncertainty. As the market’s watchtower, it must look out for harmful consolidations while clearing a path for low-risk strategic deals to move ahead.

The introduction of a more proportionate screening system—particularly for National Security Reviews—would also be a positive step forward. The U.K. Government has announced its intention to refine the existing National Security and Investment Act’s (NISA) mandatory screening rules to give greater clarity, but there is potential to create a more pro-growth and streamlined screening system. Such a system would recognize safe and routine dealings between regular partners in the U.S. and the U.K., paving the road for a smoother and more stable deal-making process.

There is an onus on the companies to work well within the regulatory environment that they have. Buyers and sellers need to identify cross-border risks early enough to structure and price around them. Get those conditions right, and transatlantic M&A can continue to deliver value well beyond the transaction itself.