Mergers and acquisitions worth 2.2bn

THE value of mergers and acquisitions involving Irish companies has almost trebled in the fourth quarter of 2003 to 2.2 billion compared to the same period in 2002.

The latest M&A Tracker survey by corporate finance specialists Ion Equity shows that in the current quarter, there were 46 deals worth more than 2.2 billion involving Irish companies compared to 31 deals worth 838 million in the fourth quarter of 2002.

The biggest single deal in the fourth quarter is Royal Bank of Scotland’s recommended 880 million offer for First Active and overall the financial services sector accounts for more than 40% of the transactions detailed in the Ion Equity survey.

Deals involving CRH plc, which will be revealed in the New Year, are not included.

Ion Equity director Joe Devine also expects the improvement recorded in the final quarter of 2003 to continue into the new year.

“Several companies are now indicating that they have come towards the end of their restructuring programmes and may now begin focusing on larger strategic acquisitions. Looking forward to the next three months, it is clear that optimism is returning to markets and this should prompt more acquisitions by larger traditional business,” he said.

Within the support services sector, Mr Devine said there seems to be renewed interest from foreign companies wishing to gain a foothold in the Irish market as well as fresh evidence of Irish firms seeking to make overseas acquisitions.

“As the economy in general continues to move to a greater services base, there should be plenty of opportunity for growth and consolidation,” he said. The largest single trade sale to Irish buyers was the 35 million acquisition of 75% of Thomas Read Holdings by an unnamed Irish investor group.