UK firms’ foreign takeovers hit record low in Q4

The number of foreign firms bought by British companies fell to a record low in the fourth quarter of last year while foreign takeovers of British firms rose, official data showed on Tuesday.

The Office for National Statistics said spending by UK firms on foreign companies fell to 0.9 billion pounds in the three months to December. That compared with 2.5 billion pounds in the previous quarter and was the lowest since records began in 1987.

The value of foreign takeovers of British companies rose to 13.8 billion pounds from 4.0 billion pounds in the third quarter.

While the global financial crisis has dampened merger and acquisition activity, the weakness of the pound has boosted the attractiveness of British companies for foreign buyers.

Sterling hit a 23-year low of $1.35 at the start of 2009 and has remained weak.