Irish deal-making falls by 71% in the first half of 2020

By: July 16, 2020

As the COVID-19 pandemic ravages economies and societies across the globe, new data shows that deal-making has been severely curtailed.

Mergers and acquisitions (M&A) with any Irish involvement totalled US$6.3 billion during the first half of 2020. This is down 71% compared to the value recorded during the same period in 2019. It is also the lowest first-half total since 2011 according to Refinitiv research.

The largest deal, Eaton Corp’s US$3.3 billion sale of its hydraulics business to Danish Danfoss A/S in January 2020, accounted for over half of deal-making activity so far during 2020.

“After an unprecedented M&A cycle, the second quarter of 2020 marked the official end of the post-financial crisis era for deal-making,” says Bebhinn Dunne, country manager for Refinitiv Ireland.

“With global M&A down 42% by value and a sharp decline by the number of deals, Irish deal makers hit pause. It will take a bit of time for confidence levels to return to the boardroom.”

Download the M&A report here.