Business

Irish companies involved in fewer mergers and acquisitions but values rise

Phoenix Tower’s proposed purchase of Cellnex’s Irish telecoms masts tops first quarter deal table

Cellnex's proposed sale of its Irish telecoms masts for $1.1 billion was the largest outbound transaction announced in the first quarter

Ian Curran
Thu Apr 4 2024 - 11:20

Mergers and acquisitions (M&A) activity involving Irish companies remained subdued in the first three months of the year despite an overall increase in the value of deals from last year, new figures from the London Stock Exchange Group (LSEG) indicate.

After a moribund 2023, the value of deals involving an Irish business on either side of the transaction rose to $3.7 billion (€3.4 billion) between January and the end of March, more than double the value recorded over the same period last year. However, the figure was lower than the totals for the first quarter during each of the three years before that, LSEG said.

Meanwhile, the number of Irish deals declined 24 per cent to the lowest first quarter total since 2020.

Irish telecommunications companies were the most popular target for foreign investors, LSEG said, with Phoenix Tower’s proposed $1.1 billion acquisition of Cellnex’s telecoms infrastructure here topping the deal table in the first quarter. Subject to regulatory approval, the sale is currently pending.

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On the other side of the equation, Irish-registered Macquarie AirFinance’s proposed purchase of 23 aircraft from Kuwaiti firm Alafco for $1.1 billion was the largest outbound M&A transaction over the period.

“Irish M&A announced deal values increased 128 per cent in the first quarter versus the prior year but remain well below the 10-year average for the first quarter,” said LSEG’s Ireland country manager Ian McFarlane. “The number of totals deals were similar to levels last seen during 2020 at the peak of Covid.”

Looking ahead, he said: “Global M&A deal making continues to remain subdued due to the number of headwinds such as higher interest rates which ended cheap acquisition finance, stricter antitrust enforcement, continued economic uncertainty and geopolitical tensions.”

Amid soaring interest rates and borrowing costs, global M&A volumes slumped by around 24 per cent last year, according to some estimates, but market analysts expect a pickup this year if central banks begin to cut rates.

Ian Curran

Ian Curran

Ian Curran is a Business reporter with The Irish Times

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