Value of merger and acquisition activity falls 76% in 2009
Figures from Experian show the number of transactions fell to 221 from 323, a drop of 31.6%.
In the fourth quarter of 2009, the number of transactions announced in Ireland fell by 26%, to 45 deals from 61 in the previous quarter.
The value of completed deals in Ireland also fell significantly from €3.5bn in the third quarter to €1.3bn in the fourth quarter, a near 63% drop.
In Europe there was a 23.5% drop in activity last year with 10,905 deals announced compared to 14,250 in 2008.
In total, $811.4bn worth of transactions were announced, down by 30% on the €1.159bn recorded in 2008.
There were three deals over €100m recorded in the fourth quarter of 2009 in Ireland.
Corpfin strategic consultant Brian Rarity said: “The Republic of Ireland saw somewhat larger declines in deal volumes and values than were evident in Europe as a whole, comparing the full year 2009 with 2008.
“The picture is no brighter if one looks at Q4 of 2009 against a backdrop of Q3.
“Clearly some regions have suffered more than others in terms of dropping deal values and volumes. Let us hope that 2010 will bring better news.”
The largest Irish M&A transaction in the last two years was Scottish & Southern Energy’s €2.6bn acquisition of Airtricity from NTR. That deal was announced in January 2008 and completed the following month.
In Europe the largest deal was announced in August when Warner Chilcott acquired the global pharmaceuticals business of Proctor & Gamble for a consideration of €2.2bn.
Europe saw a 23.5% decrease in M&A and ECM transactions announced during 2009.
There were only 10,905 deals completed compared with 14,250 transactions in 2008.
A total of €811.4bn worth of transactions were announced in Europe in 2009. That was a decline of 30% on the €1.159bn recorded in 2008.
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