Irish merger and acquisition (M&A) activity continued to buck European and global trends in the first half of the year, with the volume of deals involving companies in the Republic rising modestly compared to last year.
Yet, the total value of transactions fell by more than half over the period, according to a new report from William Fry, as the value of large-cap deals plummeted.
As is typical, the majority of M&As in the six months to the end of June involved mid-market companies, the law firm said, but there were some larger transactions of note over the period.
The biggest deal in the first half of 2025 was the €1.9 billion acquisition of Limerick-based Nordic Aviation Capital by a subsidiary of the sovereign wealth fund of the United Arab Emirates in May.
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The transaction was one of five with a price tag of more than €500 million in the first half of the year, matching the volume of larger deals over the same period in 2024, William Fry said.
Other transactions of note this year include conglomerate DCC’s sale of its healthcare division for €1.2 billion to London-based private equity firm Investindustrial Advisors, and the Government’s €1 billion disposal of its remaining 8.23 per cent stake in AIB.
Overall, 236 deals were announced in the first six months of the year, the law firm said, up 4 per cent from 227 in the first half of 2024. Over the same period, deal volumes fell by 19 per cent across Europe, according to the report.
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However, the total value of transactions announced in the Republic this year was €8.8 billion, down 51 per cent from the first half of 2024.
This was largely due to a “slowdown in large-cap” and “transformational” deals worth more than €500 million, according to the report.
Specifically, the first half of last year saw several larger-scale deals, including Apollo Global’s €10.1 billion buyout of its stake in Intel’s Leixlip plant, which pushed up the total.
Andrew McIntyre, head of corporate and M&A at William Fry, said the modest increase in deal volume suggests the market here remains resilient despite global headwinds.
“While deal values moderated due to fewer large transactions, the data highlights the strength of Irish assets,” he said.
“International interest is strong, and private equity is showing renewed momentum in the mid-market.”
According to the report, inbound M&A continues to dominate the Irish market, accounting for 63 per cent of all deals here, up from 57 per cent last year.
Some 148 inward investment transactions were announced over the period, 81 of which were in the first three months of the year alone, William Fry said.
Global deal-making has been hampered in the first half of 2025 by heightened geopolitical tensions and uncertainty around tariffs and other trade-related issues.
At the macroeconomic level, the slower pace of global economic growth now forecast this year by the likes of the International Monetary Fund should be considered headwinds for Irish M&A activity, Mr McIntyre said.
However, he said there are “reasons for cautious optimism” with several high-profile deals announced early in the second half of 2025, like Dalata’s €1.4 billion sale to Swedish property group Pandox.
