Private equity-related UK mergers and acquisition activity dropped to its lowest level in more than two years in the second half of 2007, falling nearly 70% compared to the record volumes in the first half of the year.

UK buyouts fell to just $21.6bn (€15bn) in the second half of this year, the lowest level since the first half of 2005 and down 67.6% compared to the first half of 2007 when $66.9bn of deals were completed, according to Dealogic, the investment banking research provider.