Fewer mergers in 2012 but value of 294 deals concluded surpasses €28bn

Merger and acquisition activity declined by over 4% in volume terms last year.

A total of 294 transactions were announced in the Republic during 2012, according to annual figures from international information services specialist Experian.

This tally was down by 4.2% on the 307 deals announced during 2011.

However, the actual value of merger and acquisition & transactions was up by 1% on the previous year to just under €28.6bn.

Ireland also maintained its share of the European merger and acquisition & market — representing around 3% of the total volume of all European transactions during the year and 3.9% of their total value.

“Despite a decline in activity in the last quarter of the year, the full-year figures for 2012 represent a resilient performance in the face of persistently challenging conditions for merger and acquisition & in the Republic,” said Wendy Driver, business development manager at Experian Corpfin.

She added, however, that signs exist that 2013 could be a strong year for merger and acquisition deal activity.

“The increase in high-level deal making — mirroring a UK trend — suggests investor confidence at the top-end is on the up and is potentially an encouraging sign for a strong 2013.”

In terms of large deals — those with a value of over €120m — 29 transactions were completed; representing a near 21% year-on-year increase.

The largest deal completed here during 2012 was the near €9bn takeover of Dublin-based firm Cooper Industries by US industrial engineering group Eaton.

Mid-market deal activity — those with a transaction value of between €12m and €120m — was level, in volume terms, with the previous year at 64, but values declined by nearly 4% to €2.24bn.

The purchase of the Irish headquarters of international investment bank State Street by US real estate investor Kennedy Wilson was the largest deal in this segment.

In the small deals (value of under €12m) CRH’s takeover of British company Anchor Bay Construction Products was the largest deal, at just under €12m.

Deal flow in this category was 6.4% down on the previous year, with 44 transactions being completed, but combined values were up by over 9% on 2011 levels at €232m.