Ireland

Breakdown: Britain’s precarious pre-Brexit pact

16 Jun 2017

A Conservative pact with Northern Ireland’s DUP party is focusing minds on what Brexit means for the UK’s only EU land border. It also rules out a potential fix: EEA membership. The upside of their odd coupling is a more frank debate about challenges that lie ahead.

Ireland pitches AIB float with a dose of realism

13 Jun 2017

The Irish government will sell 25 percent of the nationalised lender for between 3.9 and 4.9 euros per share. The midpoint values the bank above domestic rivals but at a discount to European peers. That’s a fair reflection of its bad loan book and domestic economic risks.

Northern Ireland pact bad for peace and UK voters

12 Jun 2017

British Prime Minister Theresa May's attempt to form a government with Northern Ireland's DUP could come at a high price. True, the party is pro-Brexit and wants to avoid a UK breakup. But taxpayers can expect greater fiscal transfers and more friction in the restive region.

New Irish leader is more like Renzi than Macron

5 Jun 2017

Leo Varadkar will be Ireland’s youngest prime minister, prompting comparisons with France’s Emmanuel Macron. Parallels with Italy’s former PM Matteo Renzi are more apt. His government is weak, and he could be at odds with Europe on Ireland’s chief challenges of Brexit and taxes.

AIB’s IPO must balance politics and pragmatism

31 May 2017

Ireland plans to float 25 pct of the nationalised bank. A good result for the government would be a valuation similar to UK lender Lloyds. Similarities include low costs and strong market share. But AIB also has some things Lloyds doesn’t, like a bad loan ratio of 14 percent.

Cardinal sings out two more drug warnings

18 Apr 2017

The U.S. pill distributor said for the third time since October that falling prices would hurt profit. Cardinal Health underscored the hard times ahead by paying $6 bln for Medtronic's medical-supplies unit to diversify. Other links in the pharmaceuticals chain will suffer, too.

Ireland will struggle to recoup AIB bailout costs

20 Mar 2017

The country spent 20.8 bln euros rescuing the lender, and has so far got 6.6 bln euros back. A forthcoming listing could, under optimistic assumptions, raise the rest. The staggered nature of the sale, economic uncertainties and the need for a discount point the other way.

Northern Ireland vote sends Brexit warning shot

4 Mar 2017

Nationalist party Sinn Fein made surprise gains in snap elections, buoyed by discontent with the ruling unionist DUP. That puts the duo, who must govern together, on a more equal but confrontational footing. The result may be a bumpier path for Britain’s EU exit negotiations.

Northern Ireland may bolster case for own spinoff

2 Mar 2017

If Thursday’s elections produce a stalemate, London may have to rule the thorny region directly. The 9 bln pound cost per year of propping up the region is likely to grow after Brexit, but a united Ireland is problematic too. The north is a prize no one wants.

Allergan adds ice and a slice to M&A cocktail

13 Feb 2017

The drug company is paying $2.5 bln for Zeltiq and its diet-avoiding, fat-freezing tech. It sounds a wackier play than the dozen deals Allergan struck last year. But vain customers pay cold cash for the treatment, making it less speculative than other deals, like gene therapy.

Ireland could join Britain in EU departure lounge

6 Feb 2017

Dublin’s unequivocally pro-Brussels stance may be tested if politics unmoors it from key trading partners like the UK and U.S. A tough Brexit deal, along with an inflated EU budget bill caused by tax inversions, could raise tricky questions about Ireland’s true interests.

Ireland is the filling in unappealing tax sandwich

30 Jan 2017

It's the big loser, in both trade and security, from the UK's exit from the EU. True, Ireland could pick up high-end investment as the UK sheds it, but even that hinges on an attractive tax rate, which is now under threat - both from its neighbour and from Donald Trump's America.

Ryanair snaffles Lufthansa’s flight plan

10 Jan 2017

The Irish low-cost carrier in 2016 ousted Lufthansa as Europe's biggest airline by passengers. Boss Michael O'Leary has proved better at learning from his rival than the other way round. A full-blown attack on Lufthansa's home turf via a new Frankfurt base is in the offing.

Japan pays top price for Big Banana

9 Dec 2016

Sumitomo is buying Dublin-based Fyffes for 751 million euros. A 50 percent premium is expensive for the humble fruit, especially with no major banana boom on the way. Access to more volumes and markets gives the Japanese group agility in responding to global demand.

Irish lack ammo in corporation tax battle

22 Nov 2016

Theresa May and Donald Trump’s plans to slash UK and U.S. corporation tax rates are ominous for Ireland. Cutting its headline rate further is toxic politically and would reduce a key source of revenue. It leaves Dublin reliant on EU access as competition for investment grows.

Guest view: A new blueprint for corporate tax

29 Sep 2016

Europe's complaint against Ireland and Apple reflects a problem bigger than any one company or country. The global approach to tax is past its sell-by date. A system based on revenue location, and that treats multinationals as single entities, could share the pie more fairly.

Irish budget handout spreads largesse beyond Apple

22 Sep 2016

The government may phase out an unpopular levy introduced during the financial crisis. A strong recovery gives it scope to part with a tax that brings in 8 percent of revenue. Offering goodies to workers may also quiet demands that it accept Apple’s 13 bln euros in back taxes.

Better to fly Europe’s airlines than buy them

12 Sep 2016

Fuel prices have fallen, but that has incentivised European carriers to keep too many planes airborne. Demand is too weak to meet the supply, which means ticket prices are set to fall, and with them airlines’ profitability.

Dublin faces fiendishly tough call on Apple appeal

2 Sep 2016

Ireland has a stark choice: take 13 bln euros from the tech giant in back tax and hurt its standing with multinationals, or keep its national business model intact. With Brexit looming, the safe choice is to appeal. But the country has more scope to annoy Apple than it did.

Apple’s tax spat could blight European banks

31 Aug 2016

The tech giant’s $14.5 bln EU tax bill has shades of a $9 bln U.S. fine handed to BNP Paribas in 2014. Despite big differences, both have the whiff of a transatlantic raid on those deemed able to pay. EU banks awaiting U.S. fines, like Deutsche Bank and RBS, have cause to fret.