Irish M&A Activity Sets New Record, Contrasting European Trend

Irish merger and acquisition (M&A) activity rose 4% in the first half of 2025 compared to last year, bucking European and global trends. The total value of transactions, however, fell by over half due to a slowdown in large-cap and transformational deals worth more than €500 million. The majority of M&As involved mid-market companies, with notable deals including the €1.9 billion acquisition of Nordic Aviation Capital by a UAE subsidiary and DCC's sale of its healthcare division for €1.2 billion to Investindustrial Advisors.

Irish merger and acquisition (M&A) activity continued to defy European and global trends in the first half of 2025, with a 4% increase in the number of deals compared to the same period last year. However, the total value of transactions fell by more than half, according to a recent report from William Fry [1].

While the volume of deals involving companies in the Republic of Ireland rose modestly, the total value of transactions decreased significantly. The report noted that the majority of M&As in the six months to the end of June involved mid-market companies. Notable deals included the €1.9 billion acquisition of Limerick-based Nordic Aviation Capital by a subsidiary of the United Arab Emirates' sovereign wealth fund in May and the sale of conglomerate DCC's healthcare division for €1.2 billion to London-based private equity firm Investindustrial Advisors [1].

The biggest transaction in the first half of 2025 was the €1.9 billion acquisition of Nordic Aviation Capital, which was one of five deals with a price tag of more than €500 million. This volume matched the number of larger deals over the same period in 2024. The Government's disposal of its remaining 8.23% stake in AIB for €1 billion was another significant transaction [1].

Overall, 236 deals were announced in the first six months of 2025, up 4% from 227 in the first half of 2024. Over the same period, deal volumes fell by 19% across Europe. The total value of transactions announced in the Republic this year was €8.8 billion, down 51% from the first half of 2024. This slowdown was primarily due to a decrease in large-cap and transformational deals worth more than €500 million [1].

David McWilliams, head of corporate and M&A at William Fry, attributed the modest increase in deal volume to the resilience of Irish assets and strong international interest. He noted that private equity is showing renewed momentum in the mid-market sector [1].

Global deal-making has been hampered in the first half of 2025 by heightened geopolitical tensions and uncertainty around tariffs and trade-related issues. At the macroeconomic level, the slower pace of global economic growth forecast by the International Monetary Fund is also a headwind for Irish M&A activity. However, there are reasons for cautious optimism, with several high-profile deals announced early in the second half of 2025, such as Dalata's €1.4 billion sale to Swedish property group Pandox [1].

References:
[1] https://www.irishtimes.com/business/2025/07/21/irish-dealmaking-up-4-bucking-european-trend/