Oct 7, 2020
A recent article in the Financial Post looks at M&A activity in Canada, reporting “mergers and acquisitions are set to increase following a modest third-quarter recovery from multi-year lows, as market stability and access to capital give companies the confidence to negotiate and price transactions.”
In the article, authors Madhvi Pokhriyal and Noor Zainab Hussain also report on data from Refinitiv, which indicated “some US$40.9 billion worth of M&A deals were announced in the third quarter, the highest since the onset of the coronavirus crisis in late 2019 and a 200% jump from the three months ended in June.” But they also note that it was lower than the US$50.7 billion worth of transactions from a year ago, according to the data.
“There are clearly indications that we’re in the early stages of recovery, a lot more strategic dialog going on and private equity is continuing to be very active,” says Emmanuel Pressman, Chair of Osler’s Corporate Group.
The article also notes that equity offerings also “picked up in the three months through September, as stock market recovery following a tumultuous few months early in the coronavirus pandemic encouraged issuers to tap markets to recapitalize.”
For more information, read Madhvi Pokhriyal and Noor Zainab Hussain’s full article “Canada M&A emerges from pandemic lows with activity seen picking up” in the Financial Post.