American investors turn to the North of England

American investors turn to the North of England

DeloitteNew research from Delloitte has revealed that the North West of England is a hotbed of American investment, with 54% of transactions between the US & UK since 2013 have been completed in the North West.

US investors are turning to the North of England for strategic investments as M&A activity between the two countries is the strongest globally. Out of the 93 transactions between US & the UK since 2013, 51 have been completed in the North West.

In the North, manufacturing attributed for almost a third of US outbound transactions with technology and media a close second (22%) followed by consumer business (16%).

Americans are turning to the fertile investment ground of the North as over 40% of transactions involved a US private equity player.

Iain Marlow, assistant director in corporate finance at Delloitte, said: “While US investors are concentrating heavily on London and the South East, the regions are playing a vital role in attracting investment into the UK.

“Given our rich industrial past it is no wonder that manufacturing continues to underpin deal flow in the North, but the data also highlights another important trend, and that is the growing success of our TMT industry.

“Ongoing investment in technology and infrastructure across the North is ensuring that the Northern Powerhouse remains an exciting place for international companies and investors to do business.

“Having clearly achieved a lot in attracting investment, not just from the US but also increasingly from China and India, we now need to ensure that British businesses, across all the regions, have the tools they need to capitalise on the exciting opportunities that lie in the US.”

Cahal Dowds, vice-chairman of Deloitte’s corporate finance advisory business, added: “There is an exceptional appetite for deal making across the Atlantic, coinciding with a slowdown in the emerging markets, a strong US dollar and sterling, and a similarity of business structures and styles.

“US and UK companies are holding record levels of cash balances, and with slow organic earnings growth, they are increasingly pursuing higher profits through M&A activity.”

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