Jan 4, 2021
Despite the ongoing pandemic, a “wave of big deals” in the final weeks of 2020 indicates that Canadian corporate mergers and acquisitions activity is back on track, with the year ahead promising to be one of the busiest in recent memory. In an article in The Globe and Mail, journalist Jeffrey Jones reports on this spike in activity and turns to a number of legal experts for insight, including Manny Pressman, Osler partner and Chair of the firm’s Corporate Group.
“A new cycle has begun,” he says, with activity propelled by a combination of factors, including “companies seeking strategic growth in their sectors, private equity deploying capital and special purpose acquisition companies eyeing targets in Canada.”
This environment is further bolstered by record low interest rates and the market optimism generated by the onset of the coronavirus vaccine rollout.
“The switch flicked on in November in terms of when deals started to hit the tape and when they started to get real traction,” Pressman says.
The article reports on the increase in announced deals through the third and fourth quarters of 2020, with particular activity in the energy, mining and precious metals sectors, including Husky Energy Inc.’s $23.6-billion agreement with Cenovus Energy Inc. to create a new integrated energy leader.
If you have a subscription to The Globe and Mail, you can learn more by reading the full article “‘Best market for M&A financing that I’ve seen’: Why 2021 will be a big year for deals” published on December 23, 2020.