M&A activity increases by 124%

MERGER & acquisition activity recorded an increase of 124% in the value of deals done in the first quarter of 2009 compared to the final three months last year, figures released yesterday by Experian show.

That rise in value discounts the Government’s e7 billion bailout of the three main banks in included in the figures for the last quarter of last year, the company said.

Just 48 deals were announced in Q1 2009, a 15.8% drop on the 57 transactions recorded in the previous three month period.

The figures in general however, are better than most European countries, Experian said.

CRH, the world’s second largest supplier of building materials and concrete products, again remained the most active corporate in the M&A and equity capital market (ECM), the latest analysis shows.

It announced three deals as well as a significant rights issue involving a cash raising exercise by way of a rights issue worth over e1.2bn.

Overall, Europe suffered a 17.4% decrease in M&A and ECM transactions announced during the first quarter of this year.

Up to 2% of all European deals had an Irish element, said the report.

By comparison a total of 81 transactions were announced here in the first quarter of last year, valued at e4.8bn.

The total deal value of e1.6bn compares with e700m in the final three months of last year when the bailout figure for the banks is discounted.

Richie Smith from Experian Ireland said that given the scale of the economic downturn, it was unsurprising that deal volumes and values were down in Europe overall.

It was important that deal activity has continued even it at a much lower level than before, he said.

The most active financial advisors were Davy Corporate Finance with three deals worth €1.255bn, followed by Barclays Bank, BNP Paribas, RBS Hoare Govett and UBS who all advised on the e1.2bn rights issue of CRH.