Britain’s leading companies are less adventurous than their US and continental European counterparts when it comes to making foreign acquisitions – and they are becoming even shyer, according to research by KPMG, the accountancy group.

The study of acquisition trends from 2000 to 2005 shows that continental European companies are five times more active than those in the UK in the so-called Bric economies – the big and fast growing markets of Brazil, Russia, India and China. Continental European companies are also more open to acquiring companies in the “emerging markets” of east and central Europe.

As a result, British companies are in danger of irretrievably sacrificing growth potential to European competitors and depriving shareholders of growth opportunities, the study says…

One explanation for the weak showing appears to be that the types of companies investing most heavily in the Bric countries – typically manufacturing companies in France, Germany and the US – are not well represented in the UK.

But Simon Collins, head of corporate finance for KPMG, said that explanation was losing its force. “The US is quite service-led and there have been a lot of acquisitions by US services companies, particularly in China and India.” He said the idea that these economies were drawing a lot of skittish capital was outdated. “It’s evident now that there is some very well researched corporate investment going into emerging markets.”

The study has tracked 9,808 acquisitions around the world since 2000 with a deal value of $4,230bn (£2,369bn). British companies were on average twice as active as their US counterparts and 40 per cent more active than continental European companies in terms of the numbers of acquisitions. [Financial Times]