The latest survey of the M&A market from Regent showed that the there was a 20% drop in the number of deals in January compared to December.
The absence of any $1bn plus deals also took the value of M&A activity across Europe down by $5bn compared to the end of last year.
But the market watcher is confident that the market will bounce back from the January dip. "It is clear that there is still an appetite for strategically important deals," Regent stated.
Highlights for January included Siemens offering $440m Canadian dollars for RuggedCom, a provider of communications networking products for harsh environments.