Europe will end the year as the worst-hit region for mergers and acquisitions activity, according to new research, with total volume down over a third since January as frozen credit markets and extreme market volatility made non-crisis tie-ups increasingly difficult.

According to data provider Mergermarket's preliminary year end round-up, which provides the first overall picture of the M&A landscape of the last 12 months, European activity was down 34% compared to a decline of 28% globally.