Looking ahead, there are reasons for cautious optimism for Irish M&A

At a sectoral level, themes such as decarbonisation in the energy sector and demand for digital transformation in the TMT industry are likely to drive activity. The early days of H2 have already seen a number of high-profile deals announced including Swedish property company Pandox’s €1.4bn purchase of Ireland’s largest hotel group Dalata. There is also potential for the PE backlog to be relieved, providing a boost to dealmaking from investors who have been quieter in recent months.

At a macro level, while the slower pace of the global economy is a headwind, Irish growth is now expected to accelerate, heightening the attraction of targets in the country. The ECB’s interest rate reductions will provide further support while, more broadly, interest rate reductions globally are easing the cost of fundraising for bidders and investors. And in the absence of a further ratcheting up of political uncertainty, which is by no means guaranteed, some of the deals delayed during the first half of the year should start to move forward.

Another bright spot is that, despite concerns in some areas of the market, the implementation in January of Ireland’s foreign direct investment (FDI) screening regime has not yet prompted significant regulatory interventions in inbound M&A activity. It is still early days for this new legislation, but the focus on national security has not yet resulted in deals being blocked.

Nevertheless, challenges remain. Geopolitical risk has spiked in recent months, with the potential for extended conflict in the Middle East and Ukraine continuing to destabilise markets. Tensions between the US and China provide further cause for concern, while the Trump administration’s trade and tariff fpolices remain unpredictable.

However, dealmakers, both corporates and sponsors, are adept at riding out any storms in the M&A market, and Ireland will continue to be an attractive location for investment in the second half of 2025 and beyond.

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