The UK logistics sector has recorded an increase in deal activity in the third quarter of the year. The development is despite a low deal volume year-to-date compared to the previous year. It is recorded that the transaction volumes increased by 12.5 percent in the third quarter of the year.
The data was published by accountancy and business advisory firm BDO LLP. In fact, trade deals in the third quarter accounted for two-thirds of transactions. In addition, private equity in the UK and the US continued to show interest in the domestic market, the report said.
Jason Whitworth, M&A partner at BDO LLP, said in the report,“There remains a strong sense of caution across the market. However, there are signs that trade buyers and investors are starting to see opportunities to generate value, and this is reflected in an increase in Q3 M&A activity. Although deal volume to date, at 33 deals, is significantly down on the previous year’s 47 deals, there continues to be strong activity from key operators.”
Another interesting fact that the report highlighted was that the BDO Logistics FTSE Index bounced back to levels, ahead of where it started in last July. This reflects the sector’s strength in the past months and its potential in the coming future. However, Brexit is a looming challenge for the sector.
Logistics UK has warned that a no-Brexit deal could add more than $311 million to the sector’s annual bills, media reports said. This could impact the sector on various levels, which remains unknown at the moment.