Ireland’s M&A no blarney for foreign investors

Ireland has taken huge strides to address its sovereign and bank debt problems. This has been recognised internationally and is reflected in recent mergers and acquisition (M&A) statistics.

M&A activity in Ireland in 2011 increased by 44% in value – from €9.9 billion (US$12.6 billion) to €14.3 billion – and 5% in volume (from 76 to 80 deals) compared to 2010. This boost in M&A activity builds on the increase shown in 2010 from 2009, and activity through to the start of this year shows that M&A activity in Ireland remains resilient. In the first two quarters of 2012, 43 deals worth €15.8 billion were announced, representing a 16% increase in volume and nearly a seven-fold increase in value when compared against the 37 deals worth €2.3 billion announced in the same period last year.

2011’s strong performance was largely due to activity in the financial services sector, driven to a great extent by the banking crisis. However, corporate disposal activity extends beyond the financial services space, with notable activity in the first half in both the utilities and healthcare spaces.

Shane O’Donnell is a partner at William Fry’s corporate department. He can be contacted at +353 1 639 5112 or by email at shane.odonnell@williamfry.ie

Sonya Manzor is a partner at William Fry Tax Advisers. She can be contacted at +353 1 639 5212 or by email at sonya.manzor@williamfry.ie