Cash deals as a proportion of mergers and acquisitions are running at record levels this year, according to bank analysts. The growth has been driven by the rise of cross-border mergers, aggressive lending by banks and the highest levels of cash on company balance sheets for almost a decade.

Cash-only M&A activity accounted for 3.2% of global market capitalisation in the 12 months to May 31, its highest level for at least 20 years, according to a report by Lehman Brothers.