UK M&A deal activity slows in H1 2025 following record six-months prior
Following the highest volume of M&A activity in over a decade in 2024, the UK financial services industry saw a relative slowdown in the first six months of 2025, reporting a 16% half year-on-year decrease in deals, according to EY’s latest financial services M&A analysis.
UK banks, insurers and asset managers publicly disclosed 149 deals between January and the end of June this year, down from 177 deals in H1 2024 and 201 deals in H2 2024.
The total disclosed deal value in H1 2025 also decreased year-on-year, falling from £6.9bn in H1 2024 to £4.3bn in H1 2025. Overall, in 2024, financial services M&A deal value was £19.7bn.
Damian Hourquebie, UK financial services strategy and transactions leader at EY, comments: “Rising geopolitical challenges, ongoing regulatory scrutiny and broader economic headwinds have weighed on dealmaking in the first half of this year, and activity is down on the six months prior. But market signals point to investors and corporates remaining cautiously optimistic, and looking ahead, despite challenges, M&A activity is expected to continue as we enter the second half the year. Stabilising interest rates and a renewed focus on pro-growth policies should help market confidence and support dealmaking.”
Half year publicly disclosed M&A activity across the UK’s financial markets
- UK banking deals fell from 34 in H1 2024 to 29 in H1 2025, and deal value fell from £5.5bn in H1 2024 to £2.5bn in H1 2025.
- UK insurance deals fell from 95 in H1 2024 to 60 in H1 2025, however, deal value increased from £0.9bn in H1 2024 to £1.6bn in H1 2025.
- Bucking the trend of the other sectors, deals in the UK wealth and asset management industry increased from 48 in H1 2024 to 60 in H1 2025, but overall disclosed deal value fell from £0.5bn in H1 2024 to £0.2bn in H1 2025.
The number of non-UK firms acquiring UK targets rose from 34 in H1 2024 to 41 in H1 2025, and the total disclosed deal value also rose from £1.0bn in H1 2024 to £4.1bn in H1 2025.
UK firms acquiring overseas targets decreased from 50 in H1 2024 to 37 in H1 2025, and overall disclosed deal value also fell from of £1.3bn in H1 2024 to £0.1bn in H1 2025.