MORE than half of UK companies expect to pursue mergers and acquisitions in the 12 months, but the number of businesses expecting organic grow fell by 11 per cent.

The Global Capital Confidence Barometer, published today by Ernst & Young, found 51 per cent of UK businesses will consider takeover deals in the coming year, up three percentage points on the last survey in October but short of the global figure of 56 per cent.

The survey found companies are placing emphasis on growing through joint ventures, as fewer expect organic growth.