UK firms dominated the European mergers and acquisitions (M&A) market last year, with magic circle firm Clifford Chance topping the deal-value table for the second year running, according to figures released by analysts Thomson Financial this week.

The City firm pulled further away from its nearest rival Linklaters, acting on 223 deals worth a total of £95 billion; Linklaters advised on 196 deals worth £90 billion.


With a deal value well below the leading two, the highest-placed US firm was Sullivan & Cromwell, in third place with 42 deals worth £67 billion. Close on its heels was Freshfields Bruckhaus Deringer, followed by US firm Skadden Arps Slate Meagher & Flom and Ireland's A&L Goodbody.


CC: 223 deals worth £95bn

Clifford Chance also topped the UK table for deal value, working on 78 deals worth £34 billion. Magic circle firms Slaughter and May and Linklaters took second and third places respectively, followed by US firms Davis Polk & Wardwell and Sullivan & Cromwell.

David Cheyne, global head of corporate at Linklaters, said: 'Confidence in the M&A market picked up slightly in 2004 but it was not a great year for M&A. There was a big growth in private equity, but there were more people chasing the deals. Sanofi-Aventis was the biggest deal, in the pharmaceuticals sector, and [cosmetic company] L'Oréal's merger with Gesparal was also large. The biggest deal in the UK was National Grid's £5.8 billion sale of its distribution networks.'


He added: 'I am hopeful that the gentle upward trend will continue in 2005, and there should be more activity in the financial services sector.'