Number of Irish mergers and acquisitions down almost 50%

Number of Irish mergers and acquisitions down almost 50%

The number of Irish mergers, acquisitions and Equity capital market (ECM) transactions in Ireland declined by almost 50% in the first half of this year, according to figures released today.

A report from global information services company Experian revealed that the total number of transactions in H1 2013 was 90 - a decline of 44.8% from the 163 transactions during the same period in 2012.

Value figures were also down in the first six months of this year with transactions worth €13.2bn - down by 39.2% when compared with H1 2012.

However, values in H1 2013 increased in comparison with H2 2012, during which just €5.7bn deals were announced.

Certain sectors have bucked the trend, such as the post & telecommunications sector, which enjoyed a 60% increase in deal. Three Ireland’s recently announced purchase of Telefonica Ireland Ltd, the Irish unit of Spanish telecoms giant Telefonica SA, was the largest deal in the sector since 2006.

Activity in telecoms is increasing across Europe - overall volumes are up by 11.9%, while deal value has increased by 77%.

There was also a significant spike in transaction value in the pharmaceuticals sector, which saw deals worth €8.3bn announced in H1 2013, up from just €1.6bn in the corresponding period in 2012.

The sector was boosted by US pharmaceutical manufacturer Actavis’ US$8.5bn acquisition of Dublin-registered Warner Chilcott Plc in May – the largest ever deal in the sector involving an Irish firm.

The Republic of Ireland represented approximately 2% of the total volume of all European transactions in H1 2013, and accounted for 5.7% of their total value.

This represents a decrease when compared to H1 2012, in which the Republic of Ireland featured in 3% of deals and contributed 6.8% to their total value.

Transaction volume in Europe declined by 21% compared to H1 2012’s figures, while deals in Asia were down by 28.6%.

“Although M&A volumes in the Republic of Ireland overall have decreased some sectors are further along the road to recovery than others,” said Wendy Driver, business development manager at Experian UK&I.

“For example, the strong activity in Ireland’s buoyant telecoms and pharmaceuticals sectors - which dominated the Irish picture in H1 2013 - looks set to continue as we move into the second half of the year.”

More in this Section

Investors spy an open goal with Italian soccer's reconstructionInvestors spy an open goal with Italian soccer's reconstruction

UK retail job losses: 24,000 and risingUK retail job losses: 24,000 and rising

Brian Keegan: Businesses approaching Brexit looking for opportunities may do well in the long runBrian Keegan: Businesses approaching Brexit looking for opportunities may do well in the long run

Declan Jordan: 'Minister Harris needs to address is the immediate huge hole in our colleges' finances'Declan Jordan: 'Minister Harris needs to address is the immediate huge hole in our colleges' finances'


Lifestyle

On June 26, we sat outside the first bar to open here since lockdown began on March 15. There are only two bars in the valley. Cafes serve drinks, but these are bar-bars, the kind that stay open after midnight.Damien Enright: Fruit trees are laden with their bounty as we prepare to leave

In October 1986, 52 mute swans, living peacefully on the Tolka in Dublin, were drenched in diesel oil accidentally released into the river. Swan-catchers went into action; only one bird died before they reached it.Richard Collins: Human crisis will offer chance for wild animal research

It's a typically Irish summer’s day of sunshine and occasional showers. Travel restrictions have been eased again and we venture forth to one of nature’s gems, Gougane Barra, deep in the mountains of West Cork.Donal Hickey: Gougane Barra has peace and wildness

When the ferryman pulls away from the pier and the salty spray of the sea hits your face the feeling of release from the mainland is deeply pleasurable. Your island awaits. Whether for a day trip or a holiday, the lure of the islands is as magnetic as ever.The Islands of Ireland: The lure of the less-visited

More From The Irish Examiner