Since 2013, the mergers and acquisitions sector in Canada has stalled a bit. The blame, according to experts, goes to big energy companies which weren't as active as they had been in previous years -- down about 25 per cent, in fact. However, experts predict the mining sector in Canada should raise those mergers and acquisitions numbers in 2018.
Even though Canadian companies were a part of US$243.5 billion in mergers and acquisitions in 2017, that number was down 11 per cent from 2016. Canadian companies weren't doing as much foreign buying this year, yet they still showed better numbers than in the past five years. There were seven large deals in Canada this year, falling from nine the year before.
Canada doesn't have the large corporations that can take part in these kinds of global mergers and acquisitions as some countries do -- the United States, for example. Its takeover target isn't not nearly as large as some other global players. Yet, there were still a few substantial deals like the Cenovus Energy purchase from ConocoPhillips in the United States for US$13.2 billion.
The world of mergers and acquisitions in Canada is complex and rife with legalities few people, other than savvy business lawyers, would understand. Those looking for more information on these types of deals would do well to contact a lawyer experienced in mergers and acquisitions. Such a lawyer would have an understanding of risk and would be able to advise his or her client on how best to achieve his or her business-oriented goals.
Source: financialpost.com, "Canadian mergers droop to $243.5 billion as big energy deals slow", Scott Deveau, Dec. 27, 2017