M&A activity increased in 2025, but values decreased

Mergers and acquisitions (M&A) activity witnessed an uptick in 2025, although deal values experienced a notable decline, as reported by William Fry. While the number of M&A deals in 2025 showed a 3% increase compared to the previous year, the overall value of these transactions dropped by 35%, totaling €19.5 billion. The absence of significant mega-deals, such as Apollo Global Management’s acquisition of a 49% stake in Intel’s Irish Fab 34 for €10.1 billion in 2024, contributed significantly to this decline.

Andrew McIntyre, the head of corporate and M&A at William Fry, highlighted that despite the decrease in deal values, the 2025 figures represented an improvement over seven of the last ten years. The energy, mining, and utilities sector emerged as the dominant contributor to deal-making value in 2025, accounting for €4.8 billion in transactions. French investor Ardian’s acquisition of Irish utilities group Energia for a reported €2.5 billion was the largest transaction of the year, bolstering deal activity in this sector.

Additionally, the pharmaceutical sector saw considerable activity with Alkermes’ €2.2 billion acquisition of Avadel Pharmaceuticals leading the way. The impact of the uncertain US and global economic landscape was evident in M&A activity throughout 2025, yet a resurgence was observed towards the end of the year. US investors remained actively engaged in the Irish market, with US and UK investors collectively representing two-thirds of all deals during the year.

Looking ahead, William Fry anticipates a shift towards more European-based deals in the coming year, driven by efforts to fortify the euro zone economy and a strategic redirection of focus away from the US market by Irish businesses. Mr. McIntyre noted a growing trend of European activity, with 13 transactions conducted by French businesses and Swiss acquisitions also on the rise in Ireland. The expectation is for heightened M&A activity in the energy sector, alongside a revival in transactions within the life sciences and technology domains.

In conclusion, despite fluctuations in deal values and external economic uncertainties influencing M&A activity, the resilience and adaptability of the Irish market position it favorably for continued deal-making opportunities. The evolving landscape characterized by a mix of global and regional players underscores the dynamic nature of M&A transactions, signaling a promising outlook for the sector in the foreseeable future.