Business

Saturday 23 September 2017

M&As fall by half over six months

Sarah McCabe

Sarah McCabe

THE number of Irish mergers and acquisition fell by nearly half in the first six months of this year compared to 2012, exceeding declines seen elsewhere in Europe.

According to a report from business data firm Experian, there were 90 deals completed during the period, down 45pc compared to the first six months of last year.

A drop in M&A activity was also evident across Europe, Asia and the US, but was less severe.

In Europe, deal volume declined by 21pc, while transactions were down by 29pc in Asia.

The value of deals was down as well, by as much as two-fifths compared to the same period in 2012. This was still an improvement on the sluggish second half of 2012.

Despite this overall reduction in M&A activity, certain sectors bucked the trend. Activity in the post and telecommunications sectors jumped by three-fifths.

Phone company Three Ireland's purchase of Telefonica Ireland, the Irish operation of the Spanish telecoms giant, was the largest deal in this sector since 2006. Activity in telecoms heated up across Europe – overall volumes were up by 12pc, while deal value increased by 77pc.

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