The Competition and Consumer Protection Commission has reported a doubling in merger notifications in 2021 compared to 2020.

The CCPC handled 81 merger notifications last year, with 74 determinations being effected by the end of 2021.

Commission member Brian McHugh (pictured) commented: “To some extent the increase may represent a catch-up from the contraction in activity during 2020, but it is clear the appetite for merger activity was very strong in Ireland in 2021. This mirrors the wider global trend of increased levels of deal making in the last year.

“The sector which has been most prominent has been financial and insurance services. In particular, we have seen a number of merger notifications in the banking sector. Three of the CCPC’s five Phase 2 investigations relate to proposed acquisitions in the banking sector.

“These have the potential to fundamentally impact on what is a key sector for the Irish economy and the CCPC has dedicated significant resources to ensuring these notifications are carefully considered.”

In Association with

On New Year’s Eve, the Commission announced that it has decided to carry out a full Phase 2 investigation into the proposed acquisition by AIB of a portfolio of performing commercial loans from Ulster Bank.

Fourteen CCPC notifications required an extended Phase 1 review, five of which required a Phase 2 investigation.

The CCPC required commitments from parties in three cases (M/20/005 ESB/Coillte (JV), M/21/016 Pandagreen / Exomex, and M/21/024 – Orpea / FirstCare).

McHugh stated: “These commitments were needed to address competition concerns and include divestment requirements and behavioural commitments such as restricting information sharing. In addition, one merger which raised competition concerns, M/20/003 – Link Group/Pepper, was withdrawn by the parties.”

The CCPC said that the average time for a determination on a non-extended Phase 1 investigation to issue was 20.2 working days in 2021, down from 22.9 working days in 2019.

Of the 74 determinations issued by the CCPC in 2021, 32 mergers (43%) were cleared using the Simplified Merger Notification Procedure (SMNP), introduced in July 2020.

The merger notification process is currently under review by the Department of Enterprise, Trade and Employment.

“We expect clarity in 2022 on what changes to merger legislation will come into effect and we will consult with stakeholders on how we incorporate any changes into our merger regime procedures,” the Commission stated.

• Download CCPC M&A report 2021 here