Member Article

North West firms attract £1.2bn cross-border investment

North West businesses attracted £1.2bn from foreign investors last year, with many benefactors pumping money into the region from Europe and the U.S.

Statistics released by Deloitte showed that cross-border deals going into the North West from overseas were nearly double the number coming out.

Foreign companies spent £1.15bn in the region, which was spread across 52 transactions throughout the past 12 months.

Businesses based in the North West, on the other hand, made 29 cross-border agreements worth £406m.

European backers spearheaded investment in the region, making 23 deals throughout 2012, while the U.S. agreed seven deals, Indian firms made three, and Japan and United Arab Emirates made two deals each.

Links between the North West and Europe proved strong as overseas investors made 23 deals and firms in the North West secured 10 deals on the continent.

Deloitte said the data gathered from information services company Experian showed the North West to be a “coveted” area for inward investment, and there is a trend for firms in this region to grow by acquiring foreign operations.

Successful takeovers from North West firms included Manchester company PZ Cussons’ acquisition of Australian hair brand, Fudge, for £25m, and Macclesfield-based engineering group, Bodycote’s agreement to buy U.S. heat treatment firm, Curtiss-Wright for £32m.

Major inward investment deals included American private equity firm AEA Investors’ £234m acquisition of Altrincham-based recruitment company, NES Global Talent, and a £41m deal made by Japanese firm, Mizkan, for the Middleton-based Premier Food’s Sarson’s vinegar unit.

Deloitte’s North West corporate finance partner, Paul Lupton, commented: “The North West is the leading UK region outside London for M&A activity and has been for some time.This data shows how outside investors view the region as a key location to invest in.”

Adding to the list of successful cross-border transactions, Deloitte highlighted three Australian deals made by North West firms, while two were made in India and one agreement was made in both Brazil and Russia.

Mr Lupton added: “Despite the reservations of some, who view takeovers from abroad with suspicion, we should be pleased that our region is considered a worthwhile location to invest in, particularly at a time when the UK economy is struggling.

“The data show that bidders from buoyant economies like China, India and Turkey invested in the North West during 2012.

“The other key aspect of the research is the deals done abroad by North West businesses. Although it is unsurprising that Europe and the US are the key markets for these transactions, it is encouraging to see that firms in the region were active in the BRIC economies of Brazil, Russia, India and China during 2012.”

This was posted in Bdaily's Members' News section by Miranda Dobson .