The level of merger and acquisition (M&A) activity involving Irish companies remained unchanged in the third quarter of 2004.
According to a survey by corporate finance firm Ion Equity, deals worth €1.6 billion were completed in the period, the same as the third quarter of 2003. However the number of individual deals dropped from from 56 to 43, the survey reveals.
The value of M&A activity in the third quater was down 40 per cent on the second quarter of this year, when it reached €2.6 billion. However Ion Equity director Mr Joe Devine said the summer period was traditionally a quiet period for M&A activity.
He said the €1.6 billion figure was also significant in that CRH and Kerry Group, two of Ireland's most acquisitive companies, did not feature at all in the third quarter.
"When you also consider that the previous quarter included one exceptional deal - Quinlan Private's €1.1 billion takeover of the Savoy Hotel Group - then the third quarter figures show a continued high level of activity and the M&A activity remains in a healthy state," Mr Devine said.
Ion said one of the most striking features of the period was the contined buying of Irish assets by Irish and British companies.
"These accounted for 57 per cent of the total value of the deals in the third quarter and notable transactions included Grafton's €353 million acquisition of Heiton Holdings, Precinct's €117 million acquisition of Gresham Hotels and Wolseley's €183 million acquisition of the Brooke group," it said.
Ion warned that uncertainties in the capital markets because of oil price fears and the US presidential election might deter some international companies from making acquisitions in the fourth quarter of this year.
