Mergers and acquisitions (M&A) in the UK are expected to strengthen in 2025, aided by the recent shake-up at the competition regulator.

According to a report by consulting firm Bain & Company, over 2024 private equity dealmaking surged nearly three times over in the UK, significantly outpacing global M&A growth.

The report noted that total UK M&A market last year was $133bn, up 38 per cent year-over-year.

The mega deals that drove value included International Paper merger with DS Smith in Q1 for $9.8bn and Carlsberg’s merger with Britvic in Q2 for $5.2bn

However, the outbound strategic deal value declined by 31 per cent year-on-year to $42bn.

Its prediction for this year is that M&A activity is “expected to strengthen further” as UK-listed companies are widely viewed as undervalued, making them attractive takeover targets.

The recent shake-up at the Competition and Market Authority (CMA) may drive this even more.

In late January, it was reported that the government sent a “clear message” to UK regulators after it ousted Marcus Bokkerink from his position as chair of the CMA.