Irish M&A Value Decreased by 10% in 2024 Amid Global Upswing
Mergers and acquisitions involving Irish companies saw a 10% decline in value during 2024, dropping to $46.4 billion (€44.6 billion). This decrease coincided with the number of deals hitting the lowest level since 2020, with only 571 transactions recorded throughout the year.
Data from the London Stock Exchange Group revealed that Irish business deals were down by 14% compared to 2023, totaling 571 for the year. Interestingly, deals with an Irish target surged to $28.8 billion (€27.7 billion) in 2024, which is four times the value seen in 2023 and a three-year high. The rise was largely driven by inbound deals, which made up 91% of the total activity by value.
The United States led the way in inbound activity with $13.87 billion, followed closely by the UK at $10.2 billion. On the flip side, Irish outbound transactions plummeted to $6.4 billion during the year, marking an 84% drop in value and the first time since 2018 that inbound M&A activity surpassed outbound activity.
Ian McFarlane, Ireland country manager for the London Stock Exchange Group, attributed the decline in Ireland’s M&A activity to the global surge in M&A deals, which increased by 10% and saw a 22% jump in Europe, the Middle East, and Africa regions. In particular, technology sector deals accounted for over half of the total value, showcasing Ireland’s ongoing appeal for strategic and high-value transactions.
Throughout 2024, the technology sector remained the most-targeted industry in Ireland, claiming 52% of the overall activity. The largest deal in the final quarter of the year was Rio Tinto’s planned acquisition of Arcadium Lithium PLC, a Shannon-based manufacturer, for $6.9 billion. Additionally, AIB’s buyback of €1 billion worth of shares from the State ranked among the top 10 largest deals in Ireland last year.
Goldman Sachs secured the top spot in the financial adviser ranking for M&A deals involving Irish businesses in 2024, showcasing their expertise in the field. Looking globally, M&A activity saw a resurgence in 2024, with transactions valued at $3.2 trillion, a 10% increase from the previous year. Despite a 14% decline in the number of deals, the trend pointed towards fewer but larger transactions, particularly in the mid-market sector.
The United States led the charge in global M&A activity, accounting for 45% of the total transactions, mainly due to significant domestic deals. In contrast, the European, Middle East, and Africa region witnessed a 22% increase in deal-making, with the UK emerging as a dominant player in the region. The Asia-Pacific region saw a modest 1% uptick in activity.
Despite a 26% drop in the number of transactions, the technology sector saw a 31% increase in total value, capturing a 16% share of the global M&A market. Energy and power sectors also played a significant role, claiming 15% of the activity share. Private equity-backed M&A activity globally reached US$705.1 billion in 2024, marking a 24% surge from the previous year.
