Market Insider

Foreign interest in US companies is lower despite hot start for global deals

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Global corporate deals kicked off 2017 with their best January since 2000, but international acquisitions of U.S. firms are lagging in the face of political uncertainty.

"The primary trading M&A partner with the U.S. is Europe. With the uncertainty surrounding Brexit and the regulatory and particularly the changes in tax, it's led to companies shying away until they have more clarity," Jim Osman, head of spinoff research firm The Edge Consulting Group, said in an email.

More than $270 billion in worldwide mergers and acquisitions was announced last month, topping the $207.1 billion in announced deals in January 2016, according to S&P Global Market Intelligence.

In contrast, foreign acquisitions of U.S. firms last month totaled only about $13.2 billion, down from $48 billion in January of last year. It's the slowest start to a year since 2009, the data showed.