UK construction deals slump/govt promises additional €1bn

Business deals within the UK’s construction and real estate industry fell by 40% in the second quarter of the year, compared with the last four-quarter average.

The slump - attributed to the economic effects of the coronavirus pandemic - comes from GlobalData, which provides data analysis across a number of industries.

The company said mergers and acquisitions (M&A) made up the largest share of business, with 28 deals accounting for 71.8% of all activity. The total value of M&A deals was €2.11 billion.

During the quarter, there were also nine private equity deals, with a total value of €203.6 million, and two venture financing deals, totalling €0.69 million.

The figures come as the UK government has announced a further €1 billion in funding for more than 300 real estate and infrastructure projects in England.

In addition to the funding boost, the government is introducing new regulations, aimed at reducing the bureaucratic process and breaking ground as soon as possible on some 300 “shovel ready” projects.