The Transat/Air Canada deal continues to heat up. When it comes to mergers and acquisitions in Canada, none has been getting more press than the possible union between the two major airlines. And Air Canada has just upped the ante by $200 million to an increased offer of $720 million. The board of directors at Transat has told its shareholders they should take the deal.
Cybersecurity is of paramount importance in today's business deals. Mergers and acquisitions in Canada fell in the first quarter of this year and much of that is being pinned on increased measures to thwart cyber theft. Both buyers and sellers of businesses are including cybersecurity as being at the top of the list when it comes to business purchases and sales.
With more and more insurance companies joining forces, actions are being ramped up to thwart cybertheft. News recently released shows that there have been more mergers and acquisitions in the insurance industry in Canada over the last year. In fact, a well-known mergers and acquisitions advisory firm says there were more than 625 brokerage and agency transactions made public in Canada and stateside last year -- significantly up from 2017.
A second bidder for one of Canada's major airlines has withdrawn its bid. On the mergers and acquisitions news front recently, Group Mach has withdrawn its offer for Transat A.T. since the company didn't acknowledge its offer despite it being higher than Air Canada's bid. Group Mach offered $14 a share, while Air Canada's offer stands at $13 per share, or $520 million.
What's happening in the gold market lately could mean a lot of dealmaking is in the works. Mergers and acquisitions could be on the upswing in Canada's gold mining sector as gold prices continue to soar in the country. Yet on the eve of this news, many companies' stocks were trading down by more than 2%.
It seems that foreign investors are staying away from Canada. A recent Statistics Canada report indicated that these investors reduced their holdings in Canada by more than $12 billion. Apparently, some of this decrease has been attributed to cross-border mergers and acquisitions. This has been the most significant decline since 2015.
The head of the nation's major railway is thinking about business deals in the wake of the corporation's profit goals for the next three years. The CEO of Canada's CN Rail is thinking big when it comes to mergers and acquisitions -- particularly acquisitions -- as CN has upped its profit goals from its original 10% per share growth goal. CN purchased the shares of a trucking company this past March as the first step in its new plan.
With most analysts predicting the economy will continue on an upswing, many business professionals are getting ready for some deal making ventures. A recent survey of executives in Canada say they are primed for embarking on some mergers and acquisitions this year and moving into 2020. In fact, more than 75% of those surveyed say they see these mergers and acquisitions coming within 12 months.
Things don't always go as planned when one company links up with another. In recent mergers and acquisitions news in Canada, one of the nation's most well-known and respected insurance companies -- Desjardins -- acquired State Farm and things haven't been all smooth sailing. Employees and higher-ups in both companies soon realized it takes time to smooth out any rough spots.
The mining industry in the country is poised for a major comeback, especially in the gold sector. The industry is gaining strength in Canada thanks to a number of recent mergers and acquisitions deals worth billions of dollars. Industry experts believe the last quarter of 2018 was a turning point for the industry and expect consolidations to continue to pave the way for additional growth.