M&A in 2025: Insights from UK Finance’s M&A Conference

On 7 July, UK Finance hosted its second annual M&A Conference, bringing together stakeholders across the M&A ecosystem, from banks and advisors to policymakers and regulators.

Discussions focused on shifting regulatory landscapes, geopolitical risk, technological change, and emerging best practices in dealmaking.

Speakers included representatives from our membership (Citi, Deutsche Numis, Investec, JP Morgan, UBS, Wells Fargo,) regulators (the Takeover Panel, CMA and FCA), sponsors (Osborne Clarke, Paul Weiss, Herbert Smith Freehills Kramer, Linklaters, Board, Davis Polk), and supporters (BlueVoyant, Sullivan & Cromwell LLP).

Below are some key takeaways.

A more permissive yet nuanced M&A environment

Despite macroeconomic and geopolitical headwinds, there are positive signs of future deal activity. Ongoing initiatives aimed at boosting growth and international competitiveness of UK markets, combined with strong private capital availability and improving smallcap valuations, provide reasons for optimism.
Deal volumes are starting to rebound from the post-pandemic dip in 2021–22. While large cross-border deals continue to face some challenges, smaller domestic transactions are on the rise.

Regulatory environment

UK authorities are placing greater emphasis on transparency, with a growing push to publish data and ensure open processes.
National and economic security considerations remain on the agenda. Tailored arguments are key.
The UK Takeover Panel has seen a busy year. In Ireland there have been several major transactions, with the Irish regulator overseeing companies with operations in or connections to multiple jurisdictions.
The FCA plays a vital role when a party seeks to acquire a 10 per cent or greater stake in a regulated firm. Well-prepared applications, with clear rationale and good signposting can help to speed up reviews. New change in control guidance provides further clarity.

Cyber risk

Cybersecurity is becoming a more significant part of dealmaking. State-sponsored attacks are rising. Thorough cyber assessments are strongly encouraged.

AI and tech: tools to enhance, not replace

AI is increasingly used to accelerate document review, automate due diligence, and identify synergies. It is not, however, a substitute for human judgement. Risks such as deepfakes, data manipulation, and algorithmic bias require experienced oversight. The human element remains essential.

Looking ahead: balancing growth and integrity

There was a strong sense that UK authorities are working to reduce friction in M&A without compromising transparency or consumer protection.
As new technologies and geopolitical tensions reshape the dealmaking landscape, strategic foresight, collaboration, and thoughtful regulatory engagement will be critical.
UK Finance remains committed to helping the UK remain a leading destination for responsible, growth-oriented M&A activity.

Area of expertise:

Capital markets & wholesale