Market conditions mean 2015 is full of opportunities for Canadian companies to be bought or merged, says Mergermarket in its latest trend report.
With a sharp decline in the price of oil over the second half of 2014, a lull in the mining and utilities sectors, low commodity prices, and weakening of the Canadian dollar, Canadian companies can expect plenty of opportunistic buyers throughout 2015.
2014 was a busy year for outbound investments, with an all-time high of 257 foreign acquisitions. The US$70.9-billion worth of deals represented the largest total value since 2007’s US$75.7 billion, as well as an 11.3% increase over 2013 (US$ 63.7 billion).
In line with the U.S., Canadian firms bought in Europe during 2014. Investment in that continent was the highest on record, with 73 deals worth US$28.6 billion. That’s 11 more deals than 2013’s peak of 62 transactions, with a 45.9% increase in total value (from US$19.6 billion).
In Canada, the Energy, Mining & Utilities sector rebounded in 2014 on the back of a record 203 announcements and US$52.5 billion-worth of deals; a 131.3% increase compared to 2013. In total, Canada saw a record 656 deals, valued at US$102.6 billion, in 2014.
Since 2012, when Canadian deals made up 11.6% of all North American mergers and acquisitions by value, the country’s share of deals declined to 7.4% and 6.8% in 2013 and 2014, respectively. That signals that M&A may not be recovering as quickly in Canada as it is in America.