Search terms: Corporate Finance/M&A, Ireland
The Finance Bill 2005 clarifies the provisions relating to value added tax on the transfer of assets as part of the sale of a business or undertaking in comparison with the delivery of goods or assets in other circumstances. The business relief exemption will apply where the assets being transferred constitute an undertaking or part of an undertaking that can operate as an independent business.
The proposed extension of the rules on takeover offers to takeover schemes is indicative of the increasing number of acquisitions which are effected by way of takeover scheme in Ireland in recent times, and will ensure that the same protective provisions applicable in the case of any takeover offer must also be observed in any acquisition by way of scheme of arrangement.
Since the start of 2004, three of the leading names in the Irish food and beverage sector have undergone significant changes in their ownership structures, with two returning to Irish ownership. It appears that the necessary funding is available to enable purchasers to continue to target established brands in the food sector, and it is likely that further deals will follow.