M&As drop by 40% amid credit crunch

Merger and acquisition activity in the UK slumped dramatically in the first three months of the year because of the credit crunch.

Accountants Grant Thornton said there were just £7.01 billion worth of deals in the first quarter, a drop of more than 40% on the same period last year when £12.53 billion was done. It was the lowest quarterly value for four years.

David Brooks, head of M&A at Grant Thornton, blamed the shortage of funding during the credit crunch. "Unfortunately, it is a far more subdued M&A environment than the past three bullish years," he said.