Ireland

UK sandwich deal exemplifies investor M&A allergy

2 Apr 2025

Food group Greencore agreed a 1.2-bln-pound takeover of rival Bakkavor. Cost savings seem tasty, and the return looks rich. The fact that Greencore’s shares dipped during talks, though, is a warning for scale-hungry CEOs: investors have limited M&A appetite in a volatile world.

Big Tech’s Irish grip is immune to election shocks

27 Nov 2024

Sinn Féin wants Ireland to ditch its centre-right coalition. If their hard-left policies win, it would give the likes of Google a fright. But with a cadre of multinationals providing 60% of corporate tax receipts, policy will continue to be weighted towards them regardless.

Ireland’s $25 bln tax bounty reveals OECD flaws

19 Nov 2024

Dublin expects a record budget surplus in 2024 thanks to a cash deluge from tech giants. In this episode of The Big View podcast, Pascal Saint-Amans, the architect of a landmark 2021 tax treaty, explains how the US’s failure to ratify the deal allows havens to rake in billions.

European airlines’ tough summer adds to M&A logic

11 Nov 2024

Carriers such as $8 bln Lufthansa and $2 bln Air France-KLM saw rising costs and competition on Eastern routes from Chinese rivals. The logical response for EU players is to look West instead. Bidding for Portugal’s state-owned TAP would drive much-needed consolidation.

Ireland spins global tax mess into $28 bln of gold

8 Oct 2024

Dublin expects a 2024 budget surplus worth 8% of gross national income, thanks to the presence of US companies lured by low levies. It’s evidence that profit shifting lives on despite a landmark OECD deal. The good news for Ireland is that there’s little chance of that changing.

Ireland can use unwanted taxes to keep Apple sweet

10 Sep 2024

Europe’s top court told the iPhone maker to pay $14 bln in corporate levies. Dublin opposed the move for fear of driving away Big Tech. But PM Simon Harris can up the country’s allure by spending the funds on infrastructure, and IT giants have limited choices for EU headquarters.

Flying PIIGS nations stir rethink in Europe’s core

12 Aug 2024

Former crisis economies like Spain, Greece and Italy have outpaced France and Germany by up to 20% since the pandemic. Lower exposure to manufacturing, a tourism boom and Brussels funds all helped. The role reversal may push Berlin to tolerate looser fiscal and monetary policy.

Airlines’ margins head to lower cruising altitude

2 Aug 2024

Carriers from $2 bln Air France-KLM to $7 bln Lufthansa reported healthy demand in the first half of 2024. But earnings are falling as expenses bite. With the switch to sustainable aviation fuel threatening to push costs ever higher, investors are bracing for smaller margins.

Ryanair leads airline sector into strategic cloud

22 Jul 2024

The $17 bln carrier’s shares sank 15% after it warned of weaker summer fares. The airline had hoped slow delivery of planes would mean less competition, allowing it to hike prices and weather higher costs. If customers are now saying no, that’s a problem for the whole sector.

Data centre boom reveals AI hype’s physical limits

4 Jul 2024

The investor frenzy over artificial intelligence assumes there will be enough infrastructure to support apps like ChatGPT. But a $1 trln rush to build data centres faces planning restrictions and energy constraints. That will limit processing power and push up costs for users.

EQT’s $3 bln gaming play hits the right buttons

3 Jul 2024

The Swedish buyout shop looks set to clinch video game services group Keywords. The target’s business of translating games like ‘Clash of Clans’ for a wide range of clients helps insulate it from an industry rut. The chunky 96% premium can also make it a high scorer.

Euro zone banks’ periphery premium is here to stay

13 Jun 2024

Lenders in Ireland, Italy, Greece and Spain on average trade with a 30% higher price-to-tangible-book value than French, German and Dutch ones. It reflects a reversal of fortunes between the old periphery and core – but also different business models, meaning the gap may persist.

CEO pay is hidden factor in US relisting trend

29 May 2024

Plumbing supplier Ferguson almost doubled its boss’s compensation after moving to New York, while $55 bln CRH is reviewing its remuneration after switching too. It’s not something boards like to talk about. But investors might support US-style pay if it attracts the best talent.

European airlines’ hot summer belies sector clouds

23 Apr 2024

Jet shortages mean that carriers may be able to charge higher fares this summer, ending years of overcapacity. For stronger players like $25 bln Ryanair, that could mean fatter margins. But it’s likely to be a short-term reprieve for a sector that’s grappling with other costs.

Ryanair clear skies contain Boeing-shaped cloud

29 Jan 2024

Despite a weaker-than-expected third quarter, the $23 bln carrier still predicts record full-year net profit. Assuming holiday bookings hold up, that looks doable. But Ryanair is exposed to the uncertainty surrounding key supplier Boeing in a way that its close rivals are not.

Rich nations can learn from Ireland’s health shift

9 Jan 2024

Dublin wants to build a universal healthcare system. Phasing out a US-like insurance model is bold and could require 20 bln euros from the state. Countries thinking of similar overhauls to deal with waiting lists and ageing citizens will need money and political consensus.

How a bold $60 bln deal went right yet so wrong

6 Dec 2023

Japan’s Takeda has cause to celebrate the fifth anniversary of its landmark acquisition of Irish peer Shire. Boss Christophe Weber achieved many aims, including broader reach and hefty cost savings. As with myriad mega-mergers, however, there’s little for shareholders to cheer.

Ryanair’s valuation can climb to a higher altitude

6 Nov 2023

Soaring demand means the 18 bln euro airline’s earnings are above even pre-pandemic levels. Investors’ recession fears have prevented Ryanair’s share price from reflecting the good cheer. Still, history suggests budget vacations are among the last things that consumers cut.

European listing exodus is just beginning

28 Sep 2023

Building materials firm CRH and packaging giant Smurfit Kappa are among a growing list of companies seeking to decamp from Europe to US exchanges. In this Viewsroom podcast, Breakingviews columnists discuss what is prompting groups to leave and why the rot is unlikely to ease.

Irish listing rot is symptom of wider EU malaise

25 Sep 2023

Packaging giant Smurfit Kappa may follow CRH in ditching Dublin for the US. The exodus, along with other potential defectors, will erode over half of the $172 bln exchange’s value. Without meaty subsidies or a pan-EU capital market, global firms have little reason to stay.