Eight Irish-based companies targeted by activist shareholders in 2024

Ireland was one of few jurisdictions in Europe to see a rise in investor activism, with Germany and France both seeing significant falls last year

In August last year, Engine Capital struck a deal with Bulmers maker C&C which saw the company appoint a new non-executive director to the board from an agreed shortlist.

Shareholder activism reached new heights last year, with the number of Irish-based companies targeted by activist investors doubling in 2024. 

In its annual review for shareholder activism, governance, risk and compliance firm Diligent noted a shift in Europe last year, with eight Ireland-based companies targeted by activist investors compared to just four in 2023.

Ireland was one of few jurisdictions in the region to see a rise in shareholder activism, with Germany and France both seeing significant falls in the same period. 

One such case in Ireland came from, Elliott Management, one of the world's largest activist funds, who last year engaged with Irish-based industrial conglomerate Johnson Controls International. 

Following the engagement, the company subsequently unveiled a succession plan for CEO George Oliver and the appointment of a new board member.

The report also noted moves from Engine Capital, an activist hedge fund which Diligent said launched public campaigns at six companies in the US, Canada and Ireland in 2024.

In August last year, the fund struck a deal with Bulmers maker C&C which saw the company appoint a new non-executive director to the board from an agreed shortlist.

The New York-based hedge fund, with a less than 5% stake in C&C, had pushed the drinks group to explore a sale which it claimed could deliver a 58% premium to the company's share price.

However, following engagement with Engine and other shareholders, an agreement was reached that C&C said would see the two sides “work constructively together” in the interests of all parties.

For the second year running, the total number of companies publicly targeted by activist investors globally surpassed 1,000 amid changing market conditions and a complex geopolitical landscape, the report said.

In the US market, shareholder activism reached a new record in 2024 with almost 600 US-based companies facing demands, up 7% on 2023, with the number of CEOs leaving US-based companies after an activist encounter almost tripling in 2024.

Looking forward, Diligent said the election of US President Donald Trump was a "boon to activism," with the potential for lighter antitrust scrutiny under the new administration stimulating mergers, acquisitions and deregulation and subsequently, economic activity.