Value of Q1 takeover deals plunges 30% to €2.9bn

THE VALUE of Irish takeover deals plummeted by 30 per cent to €2.9 billion in the first three months of the year, the latest figures show.

The Ion Equity Mergers and Acquisitions Tracker Survey shows that activity in Ireland remained high in the first quarter of the year, with 54 separate deals done, compared to 34 during the same period in 2007.

However, the survey shows that the value of the deals fell significantly, with the total for those where the price was revealed dropping by 30 per cent to €2.9 billion.

Commenting on the figures yesterday, Ion Equity director Joe Devine said the first quarter performance was good given the difficulties in borrowing money as a result of the subprime fallout and volatile stock markets.

"The first-quarter figures show that mergers and acquisitions activity in Ireland has remained resilient, despite the fall in individual deal values," he said.

Scottish & Southern Energy's takeover of Irish windfarm operator, Airtricity, for €1.08 billion accounted for more than one-third of the value of business done in the first three months of 2008.

Building materials group, CRH, also was a major contributor, buying stakes in three companies in China, India and the US for a total of €836 million.

AIB's purchase of a 49 per cent stake in a Bulgarian bank for €216 million and Kerry Group's buyout of Breeo consumer foods group for €165 million, were among the other significant transactions during the period, Ion's survey shows.

"The balance has shifted back towards trade buyers and we would expect to see these types of deals to dominate for the foreseeable future," Mr Devine said.