The European mergers and acquisitions pipeline has shrunk 10% below predictions for the three months to December, with €73bn ($104bn) of takeovers expected to complete in the quarter, according to figures from data provider MergerMarket.

The fall comes amid continuing turmoil in the global credit markets, which lead to a drop in private equity activity, reflected in the high number of trade buyers among the 10 largest acquisitions, worth a combined €62bn, expected to complete in the fourth quarter. The drop is in relation to MergerMarket's predictions for the fourth quarter, which it made in June.