M&A activity in 2011 increased by 44% in value (from €9.9bn to €14.3bn), and 5% in volume (from 76 to 80 deals) compared to 2010.  This boost in M&A activity builds on the increase shown in 2010 from 2009 and is likely to continue through 2012.  

2011’s strong performance was largely driven by activity in the financial services sector, driven to a large extent by the banking crisis.  Almost one-third of the total deals (23 deals / 29% of the volume) accounted for over two-thirds of the value at €10.4bn (73%).  These included the 98% investment by the National Pensions Reserve Fund in AIB; the €2.3bn investment by the Irish Government in Irish Life & Permanent Group; and the €1.1bn investment in Bank of Ireland by Fairfax Holdings, WL Ross & Co, Kennedy Wilson and others. As the banks continue to dispose of assets in 2012, it is expected that the financial services sector will continue to account for a majority of deals.

The traditionally strong area of pharma, medical and biotech accounted for a total of 14% of deals, showing that Ireland’s reputation for innovation and opportunities in these businesses continues to be attractive for potential investors.  This sector is expected to remain strong in 2012 and, as the financial sector opportunities decline with the recovery of the banking sector in future years, the pharma and telecoms, media and technology sectors are likely to advance Ireland’s move towards a firm and sustainable recovery.

View the William Fry M&A Review 2011 here.

Contributed by Bryan Bourke.

Back to Legal News