M&A activity is on the up as sterling slides

SVM UK Opportunities manager Neil Veitch believes M&A activity is set to increase in the UK market as sterling continues its recent slide.

Veitch, who had the top performing UK All Companies fund last year, says his fund holds a number of industrial companies, prime candidates for takeovers. “We own a broad swathe of UK small-cap industrials. We think M&A activity will return in the market. As companies find it difficult to grow they look to grow through acquisition,” Veitch says. “With sterling beginning to depreciate, we think much of the UK industrial sector will be attractive to foreign acquirers. “The UK industrials in aggregate probably have 10% to 15% of their earnings in the UK. They may be listed in the UK bu...