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European dealmaking tumbles to 23-year low as virus fallout crushes demand

The pandemic and resulting economic slump have clobbered appetite for M&A deals, especially in Europe

The Telefonica and Liberty Global deal was one bright spot amid a desert of dealmaking
The Telefonica and Liberty Global deal was one bright spot amid a desert of dealmaking Photo: Getty Images

European deals crashed to a 23-year low in the second quarter as the pandemic and resulting recession pushed bosses to preserve cash levels and hold off on acquisitions.

There was just one deal in Europe over $10bn in the three months from April to June — the merger of Telefónica’s and Liberty Global’s UK operations, with a combined value of almost £28bn ($35bn). 

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