Corporate activity accelerated in the fourth quarter in Ireland with 46 deals worth more than €2.2 billion being agreed.

The figure is almost three times the merger and acquisition business completed in the same period last year, according to figures from corporate financiers Ion Equity.

Royal Bank of Scotland's takeover of First Active dominates the M&A Tracker survey.

The €880 million offer by itself exceeds the €838 million corporate activity in the fourth quarter of 2002.

However, it was not the only substantial deal.

C&C disposed of its Barbero division in Italy to Campari for €220 million while Trinity Mirror persuaded venture capital group 3i to pay €60 million for its remaining Irish titles.

Still, the majority of the deals in which the value has been disclosed are worth less than €10 million.

The figures do not include CRH's acquisitions during the period which will not be disclosed until early in the new year.

CRH apart, Irish companies spent €100 million in 10 transactions in the three months.

Financial services was the busiest sector by value, largely on the back of the First Active takeover.

Media deals figure prominently in the data with four transactions worth a total of almost €195 million taking place, most recently Archant's purchase of Independent News & Media's London regional papers for €88.7 million.

In what is a traditionally quiet quarter for management buyout activity, there were only three such deals, including Dr Allen McClay's €28.3 million swoop on Galen's Pharmaceutical Development and Manufacturing Services unit.

Ion Equity director Mr Joe Devine said the figures confirmed that optimism was returning to the Irish market. he expects the trend to strengthen in 2004.

"There continues to be a lot of activity in the market with year-on-year transaction volumes and values up for the third quarter running," Mr Joe Devine said.

"Looking forward, it is clear that optimism is returning to markets and this should prompt more acquisitions by larger traditional businesses."