Deal-Making Fails to Reflect Return to Economic Growth; RESEARCH REVEALS DECLINE IN CORPORATE DEALS IN WALES

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Byline: RHODRI EVANS

CORPORATE deals in Wales dipped in Q3 of this year in terms of total value and number, according to latest research from global information services company Experian. The value of deals, in terms of merger and acquisitions, Stock Market listings and fundraising in Wales in the third quarter was pounds 29.5m, a fall of 77.8% on Q2 when it was pounds 133m. Year-onyear the value of deals was down 85.7% or pounds 176.2m.

There were 25 deals in Q3, compared to 28 in Q2. The value of corporate deals in Wales in Q3 represented 0.05% of deals for the UK as a whole.

And during the period there were no deals in Wales valued at pounds 100m or more. The number of large deals announced in Wales has been in decline since 2008, which saw three transactions valued over pounds 100m announced.

In terms of mid-market deals (between pounds 10m to pounds 100m) there was one transaction in Q3.

In comparison with the same quarter in 2009 both volumes and values were down. There were two deals in the mid-market range in Q3 2009, with a combined value of pounds 42m.

For small deals (under pounds 10m) there were just seven deals, compared to 10 in Q2. The value of deals decreased by 58.9% to pounds 10.6m from pounds 25.8m in the previous quarter. However, when compared to Q3 in 2009, Wales witnessed an increase in total small deals.

Wendy Smith, business development manager at Experian Corpfin, said: "Although the UK returned to growth in the final quarter of 2009, the level of deal making in the UK since then has yet to reflect this. …