New data from international information services provider Experian shows significant declines in both the volume and value of Irish-focused merger and acquisition & activity between the start of January and the end of September. However, a pick-up was noted in the third quarter of the year.
A total of 149 merger and acquisition and equity capital markets transactions were carried out, by or involving Irish businesses, in the first nine months; a 37.1% decline on the 237 deals over the same period last year.
There was a double-digit percentage decline in the value of deals, with the overall worth of transactions coming to €22.15bn; down 11%, year on year, from €24.98bn.
A total of 23 large-scale deals — those with a value of over €120m — were announced, 8% fewer than for the first nine months of 2012. The combined value of such deals fell 8%, from €22.9bn to €21.1bn.
Mid-market deal activity — those with a value of between €12m and €120m — fell 52% in volume terms, with value falling by nearly 50%, from €1.8bn to €928m.
Small deals dwindled in volume by 37%, to 27, with value dropping from €202m to €94m.
The main driver in the third quarter — which saw values rise, year on year, from €3.2bn to €8.6bn — was US generic drug firm Perrigo’s proposed $8.6bn takeover of Irish biotech firm, Elan. This is due for a shareholder vote next month.