Canadian M&A to hit record levels

14 December 2006

The new year should see record mergers and acquisitions (M&A) levels in Canada.

New research from Connecticut-based Greenwich Associates reveals two-thirds of Canadian firms with market values over C$10 million (US$8.6 million) will hire M&A advisors in 2007, and 41 per cent of the country's top 300 firms will be considering M&A.

Meanwhile investment bank Crosbie & Co reported Canadian M&A levels were at record levels of C$90.3 billion (US$79 billion).

Between 2005 and 2006 33 per cent of firms were involved in domestic M&A activity, the Greenwich Research showed.

The biggest areas of interest are said to be non-bank financials, metals and mining, real estate and telecoms and utilities.

Greenwich Associates consultant Jay Bennett said: "In terms of expected M&A activity, our research forecasts the biggest demand among the largest companies in Canada.

"It is also interesting to note that US companies are predicting a higher level of activity than their Canadian counterparts. In 2005 expectations in the two countries were comparable, with 42 per cent of Canadian companies and 45 per cent of US corporations expecting to be active in domestic M&A. This year, fully half of US companies expect to engage the services of an advisor for a domestic merger or acquisition in the next 12 months."

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