Irish Business Roundup: Grant Thornton Merger, Aer Lingus Job Cuts and More
This week saw a flurry of business news in Ireland, ranging from major mergers to job cuts and government share sales.
Grant Thornton Ireland Partners to Share €6.5 Million in Merger
Grant Thornton Ireland’s 45 equity partners are set to receive a significant windfall as the firm merges its non-audit business with its US counterpart. The Sunday Times reported that the merger, valued at €480 million, will see each partner receive €6.5 million, with 60% of the deal comprised of cash payments.
The deal follows New York private equity firm New Mountain Capital’s acquisition of a majority stake in Grant Thornton Advisors in the US. Grant Thornton Ireland’s audit business, employing 1,000 staff, will remain an independent partnership.
Aer Lingus to Cut Jobs Amidst Dublin Airport Challenges
Aer Lingus is facing headwinds due to the ongoing passenger cap at Dublin Airport and low profitability. The airline’s CEO, Lynne Embleton, has informed employees that one A333 aircraft will be grounded, and the use of A320 planes will be scaled back by the equivalent of three aircraft. While a broad-based redundancy program is not planned, some job cuts are expected.
Government Delays AIB Share Sale Due to Election Uncertainty
The government’s annual tradition of selling a 5% block of shares in AIB in November is likely to be postponed until early next year, according to the Sunday Times. The delay is attributed to uncertainty surrounding the upcoming general election date.
The government has been actively reducing its stake in AIB, which was bailed out during the financial crisis. Alongside the annual block sales, they have been drip-feeding shares into the market and participating in share buy-backs.
Pfizer Restructures Irish Operations, Wind Down Subsidiaries
US pharmaceutical giant Pfizer, which employs 5,000 people in Ireland, has wound down a dozen Irish subsidiaries with assets worth nearly €600 million as part of a restructuring plan. This move comes amidst scrutiny from US authorities regarding Pfizer’s overseas tax practices.
Banks Warn of ‘Cashless Creep’ in Ireland
The Irish Banking Culture Board (IBCB) has warned the government about the growing trend of businesses charging customers more for services if they opt to pay with cash – a phenomenon known as "cashless creep." The IBCB expressed concerns that this trend could further marginalize vulnerable members of society who may not have access to digital payment methods.
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