North East playing 'vital role' in attracting US investment to UK, finds Deloitte

The North East remained active in attracting US investment to the region during 2016, according to Deloitte’s US/UK Deal Monitor.

Deloitte identified 16 US outbound deals across both the North East and Yorkshire although outbound UK investments in the US fell significantly.

With US outbound deals in the UK rising 3.6% and UK outbound deals to the US falling by 20.4%, activity in the region mirrored the national trend.

Of the 16 deals in the North East and Yorkshire, manufacturing accounted for almost a third of the US outbound transactions, with technology, media and communications (TMT) and financial services accounting for three deals each.

Nationally, a total of 254 deals across the corridor were recorded in the Deal Monitor in the six months ending December 2016, with 172 US outbound compared to 82 UK outbound.

US outbound M&A was concentrated on London, but regional deals continue to grow, with 97 deals in the last six months.

David Frith, corporate finance partner at Deloitte in Newcastle, said: “Our region, alongside others outside of London and the South East, continues to play a vital role in attracting investment into the UK.

“This is not only in the more traditional regional industries such as manufacturing which remain key, but increasingly in businesses involved in the Financial Services and Technology sectors.

“In addition there are examples of acquisitions of businesses in the region with a US dimension, such as the acquisition of Onyx by US PE-backed Pulsant, which would only further increase this trend if included.

“The innovation being delivered by businesses in the region combined with a continued slowdown in the emerging markets, a very strong US dollar and the ability of both acquirers and vendors to focus on the fundamentals of M&A and filter out some of the macro uncertainties we face, are all driving the continuing appetite US acquirers have to invest here.”

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