European companies have the means, motive and momentum to underpin a sustainable recovery in the mergers and acquisitions market, according to bankers and analysts, at a time when growing evidence suggests confidence in dealmaking is returning to boardrooms.

As of Frdiay more than $162bn (€127bn) of deals had been announced in the past four weeks - the busiest period since October 2008 - and the three month moving average of weekly M&A activity was running at $27.4bn, its highest level in 20 months, according to figures from Dealogic.