Tag archives: Financial Post

Loonie tunes: will the low dollar attract foreign investors?

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It is no secret that the Canadian dollar has been singing the blues of late. With the loonie declining more than 30% in the exchange rate against the United States (US) dollar, shopping trips and vacations to our friendly neighbour to the south are likely to become less frequent over the next little while. The Canadian M&A market, however, may stand to benefit from the lopsided exchange rate and it has left investors wondering whether Canadian targets can expect a line-up of interested foreign buyers.

A recent Financial Post article by John Shmuel, “Low loonie luring foreign buyers, … Continue Reading

M&A in Canada: industry revenue and profits

Expanding growth in nearly all sectors

Norton Rose Fulbright focuses its services on 6 key industry sectors and, according to a study released recently by the Globe and Mail on Canadian corporations, almost all of these sectors have seen an expansion in revenue and most have seen growth in profits during the period from 2011 to 2015. While such expansion does not on its own drive M&A activity, it is important factor for identifying trends. Industries with the greatest growth may see increased M&A activity in the future; likewise industries with prolonged under-performance may be primed for consolidation.

Banking

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The … Continue Reading

Oilpatch volatility may generate deal-making opportunities

According to some commentators, ongoing volatility in oil prices may result in increased M&A activity in the Canadian oilpatch. As recently reported in the Financial Post, John Chambers, CEO of Calgary-based investment boutique FirstEnergy Capital Corp., believes a revaluation of assets in the oil and gas sector may attract cross-border M&A activity from oil majors who may use the “once in a very long time opportunity” to make acquisitions.  If this view is correct, then the recent acquisition of Talisman Energy Inc. by Spain’s Repsol SA for $8.3 billion may be a sign of things to come.

Mr. Chambers … Continue Reading

M&A in 2014: the year in review

Global M&A hits 7-year high

Reuters has recently reported that the value of all mergers and acquisitions worldwide in 2014 was at the highest annual value since 2007, owing to large deals that closed in several key industries, including telecommunications, healthcare and consumer goods and services. As at December 11, the deal volume was $3.27 trillion USD, up more than 40% from last year. Reuters notes that the deals were led largely by “cautious company boards, using shares rather than debt to fund purchases.”

M&A in Canada

The Financial Post reported that Canadian businesses were involved in combined M&A transactions … Continue Reading

Promising trends for Canada’s forestry industry

Mining and energy aren’t the only Canadian sectors showing promising signs in M&A activity of late. A recent Financial Post article reports that Canada’s forestry industry is also seeing a rise in sales and deal activity. The Post’s article highlights the U.S. housing market rebound and a shift towards Asian markets as key contributors to the upswing in Canadian forestry.

Canada’s lumber companies struggled following the 2008 crisis as the U.S. housing market hit a standstill. With its main market stalled, the industry was forced to turn to new customers, pivoting to China, and increasingly to India and Japan, to … Continue Reading

Golden opportunity: mining sector drives Canadian M&A revival

The latest M&A trends indicate a renaissance in the mining sector with gold activity placing Canada at the forefront, both as a top acquirer and a top target. According to a recent KPMG Mining M&A Quarterly Newsletter, global M&A activity in the mining sector soared in Q2 2014, up significantly in both deal volume and value from Q1 2014. Australia, China, and Indonesia are among the top contributors to M&A activity in the iron ore, mineral sands, and copper sectors, but Canada takes the top spot for the quarter by a large margin, owing primarily to gold deals.

Global

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M&A transactions on the rise in 2014

A review of recent M&A transactions throughout North America and within Canada suggests that the M&A market is rebounding following a sluggish 2013. Q1-2014 trends have set a positive tone for the remainder of 2014.

Q1-2014 transactions build a strong foundation

In North America, four large deals in the Telecommunications, Media and Technology, Pharma, Medical & Biotech and Consumer sectors drove the highest Q1 results by value that the M&A market has seen over the past seven years. Total transactions in the region were valued at US$194.8 billion, a 53% increase over last year’s Q1 results.

Mergermarket’s recent Monthly M&A Continue Reading

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