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M&A trend summary: H2 2014

MergerMarket Group recently published its January edition of Monthly M&A Insider which reported on mergers and acquisitions activity around the world during the second half of 2014. Among other things, the report explains why 2014 was so hospitable to M&A activity, citing an improving economy, large cash reserves, low interest rates, and cheap financing as contributing factors.

M&A worldwide

Overall, there were 16,588 reported deals in the second half of 2014 worldwide, worth roughly $3.2 trillion; this surpasses the previous record, in the second half of 2007, of 16,060 transactions, worth roughly $3.7 trillion. Just under half of the total … Continue Reading

PWC predicts moderate growth in Canadian M&A

In its Q2 2014 Capital Markets Flash: Canadian M&A Deals Quarterly, PricewaterhouseCoopers forecasts moderate growth in Canadian economy in the next year and a half. It predicts the rate of real economic growth in 2015 to be 2.5% compared to 2.2% in 2014 and 2.0% in 2013; it projects that government spending will increase 1.5% in 2015, compared to 1.0% and 0.4% in 2014 and 2013, respectively; and it anticipates that the biggest change will be in business investment growth, which is anticipated to be a significant 4%, compared to 1.5% in 2014 and 1.4% in 2013. 

In the … Continue Reading

Canadian Energy M&A on the rise

A recent report released by Deloitte announces that the number of Canadian deals in the energy sector has risen by 15% in the first half of 2014, compared with the same period in 2013.

The Deloitte Oil & Gas Mergers and Acquisitions Midyear 2014 Report offers an optimistic outlook for sector’s global deal activity, with Canada well positioned to benefit from the upswing.

Canada is at the centre of global deal activity

The global deal value in the energy sector has risen by 38%, to $141 billion this year, with Canada and the United States at centre of the activity, … Continue Reading

Resurgence of M&A activity in the energy sector

On Monday, Whitecap Resources (TSX:WCP) announced that it had agreed to buy a number of oil and gas properties from Imperial Oil Ltd. (TSX:IMO) for $855 million.  This transaction comes on the heels of renewed M&A activity in the energy sector. According to the Globe and Mail, this deal “pushes the industry’s tally for merger and acquisition activity for the quarter to $7-billion, nearly 10 times the total for the first three months of 2013”.

There are a number of reasons for this turnaround, including a rebound in Canadian energy prices. This is in part due to the fact … Continue Reading

Q2 2013 M&A Trends

Canadian M&A Q2 2013 results have not provided the desired relief from lacklustre Q1 results. However, while not much of the lost ground was gained, the sharp decline in M&A activity experienced in the first three months of 2013 appears to have subsided.

According to Bloomberg’s recently published M&A Rankings, these results are in line with global M&A trends. Although global M&A volume decreased by 10% from the same period last year, it increased by 3% to $489 billion from Q2 2013. Deal making activity was highest in the Americas, where Canada was second only to US in rankings … Continue Reading

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