Merger and acquisitions activity is slowing down

Clerical Medical sees food retail as an area of the market where further merger and acquisition activity will be a positive. Overall the group believes M&A activity is no longer a sign that share price outperformance will then take place. This is in part because it sees little evidence that there is much more useful consolidation to take place in the UK market. Tim Rees, director of UK equities at Clerical Medical, is not optimistic about any further activity in the oils, pharmaceuticals or telecoms sectors. He thinks these are difficult environments to be in and they have not gained all...