Canadian M&A dips in first half as trade uncertainty weighs — Thomson Reuters

Emmanuel Pressman

July 5, 2018

A dip in Canadian M&A activity in the first half of 2018 can be attributed to several factors, including trade uncertainty, according to a Thomson Reuters article. In his article, author John Tilak outlines how year-to-date deal volume slipped 2.3% to $130.3 billion from $133.3 billion in the same period last year, according to Thomson Reuters data, in contrast to a surge in global dealmaking. The article goes on to describe how second-quarter volumes jumped from the first quarter, buoyed by a number of outbound deals. The article also explores the uncertainty surrounding the North American Free Trade Agreement (NAFTA) and how it might impact market sentiment. Manny Pressman, Chair of Osler’s Corporate Practice Group and an expert in M&A, explains.

“Regulatory risk and uncertainty has become a stronger headwind that needs to be carefully considered in the formative stages of dealmaking,” Pressman tells Thomson Reuters.

“NAFTA uncertainty, alone, has not been an obvious impediment to dealmaking. However, it potentially affects value expectations and is a key contributor to broader geopolitical headwinds.”

For more information, read John Tilak’s article “Canadian M&A dips in first half as trade uncertainty weighs” in Thomson Reuters.