UK merger and acquisition activity for Q2 has remained at a low level, according to figures released by the Office for National Statistics.

While there was an increase in acquisitions abroad by UK companies - the value of the transactions from Q1 to Q2 rising from £0.8bn to £3.8bn - this was more to do with an unexpectedly low Q1 figure and on like-for-like comparisons with last year, both domestic and international M&A activity involving UK companies decreased by 39% for the first two quarters.

The most significant transactions contributing to the quarter two 2012 value for foreign acquisitions were the purchase of Ardea Biosciences Inc of the USA by Astra Zeneca Plc and the acquisition of Shubarkol Komir JSC of Kazakhstan by ENRC Plc.

The ONS suggest that the confidence of companies to carry out M&A is 'tempered' by the continuing economic uncertainty that permeates domestic and global economies and caused them to focus rather on cost cutting strategies. This was more likely than any (perceived or otherwise) lack of M&A-appropriate characteristics in UK businesses.

It was also noted by the ONS that the Q2 2012 values of M&A activity were similar to that of the same quarter in 2009.