Deal volumes in the UK remain at a record low, according to quarterly figures from the Office for National Statistics (ONS).

The research reveals that the total number of domestic UK M&A deals fell from 52 in the second quarter to 49 in the third, the lowest number since ONS records began in the first quarter of 1987. Although deal flow has suffered, values have increased as the combined expenditure on transactions rose by 112 per cent to £1.7 billion. The largest deal in the period was the acquisition of Venture Production by British Gas owner Centrica for £1.2 billion.

A similar trend can be identified for deals in the UK involving foreign companies, which has seen a drop in deals to 18, the lowest reported quarterly figure since the first quarter of 1988, while combined values have increased by 33 per cent to £0.8 billion.

The same cannot be said for foreign deals involving UK acquirers, which has seen the overall value remained unchanged at £2.4 billion, while volumes have plummeted from 26 to 17 in the third quarter.