Value of M&A deals up almost 50%

Irish companies were involved in mergers and takeovers worth €3.7 billion in the last three months of 2004. The value of M&A deals was almost 50 per cent ahead of the same period the previous year.

However, the number of such deals fell in the last quarter of the year - to 50 from 56 a year earlier. Corporate finance group Ion Equity, which collated the figures, said the fourth-quarter data reinforced a trend of fewer but larger deals.

For the year as a whole, M&A business involving Irish companies grew 33 per cent by value to €10.4 billion.

The Ion M&A Tracker Survey showed that the deal flow in the last three months of 2004 was skewed by a couple of major transactions, including Danske Bank's €1.4 billion acquisition of National Irish Bank and Northern Bank - a transaction that, on its own, almost matched the €1.6 billion total value of M&A business in the third quarter.

Other significant deals in the quarter were Tullow Oil's purchase of North Sea oil and gas interests from Shell and ExxonMobil for €291 million, the purchase of Westminster Healthcare by Barchester Healthcare for €757 million and IAWS's €130 million swoop on French company Groupe Hubert.

Ion Equity director Mr Joe Devine said M&A activity should remain buoyant this year.