Activity in Canada’s mergers and acquisitions (M&A) market is expected to rise in 2017, building on the strong trends exhibited last year, according to a new report by Citi in partnership with Mergermarket. A survey of 50 senior M&A practitioners found 66 percent believe deal-making will increase in the months ahead. Both inbound and outbound M&A are expected to drive activity, which will continue to focus on energy, industrials and financial services. 2017 trends will be influenced by an interest in the Asia-Pacific region, low oil prices, and a significant market role for corporate buyers, the survey found.
The full PDF report, Navigating Change: Canadian M&A in a Period of Global Upheaval, is available here.
New Study: Canadian M&A Expected to be Robust in 2017
TORONTO, Jan. 31, 2017 /CNW/ – A majority (66%) of M&A practitioners predict a rise in Canadian M&A activity in 2017 from 2016’s record level, according to a new M&A study produced by Citi, in conjunction with Mergermarket. Moreover, none of the 50 senior Canadian practitioners interviewed believes that M&A volumes in Canada will decrease in 2017, the study found.
The report, titled Navigating Change: Canadian M&A in a Period of Global Upheaval, finds that the positive expectations for 2017 are focused on traditionally strong sectors such as energy and industrials and financial services. Similarly, the recent high levels of outbound and domestic M&A are predicted to continue to drive deals in 2017 activity.
“2017 is certain to be another very interesting year for M&A in Canada,” says Grant Kernaghan, Managing Director at Citi Canada. “Despite continued political and economic uncertainty, it is encouraging that practitioners see that there remain a number of positive factors which are expected to deliver another strong outcome for M&A.”
Key findings of this report include:
Two-thirds of respondents (66%) believe Canadian M&A activity will increase in 2017, with 14% looking forward to significant growth and 52% predicting a moderate rise. Not one respondent predicts a fall in M&A during 2017.
Respondents see the Asia-Pacific region as offering the greatest potential for cross-border deal activity in the year ahead: 72% think it will be one of the two main regional sources of inbound M&A while 62% expect Asia-Pacific to be one of the top two target regions for Canadian buyers.
More than half of respondents (58%) think the lower price of oil is having a positive impact on Canadian M&A, as major oil and gas players consolidate, and vulnerable companies come under pressure to sell up.
More than half of respondents (60%) expect corporate buyers to register the biggest increases in dealmaking during 2017, compared to only 10% who cite institutional investors. Respondents to the 2016 report believed private equity buyers would see the most activity.
Click here to view the results and download the full PDF of the report.
Citi, the leading global bank, does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. In Canada, Citi is the country’s most global financial institution with roots dating back to 1919. With an unmatched global reach, the company is uniquely positioned to enable the progress of its clients.
Mergermarket is a business development and market intelligence tool designed specifically for the M&A sector and provides proprietary intelligence and analysis on corporate strategy across the world. With around 200 M&A journalists talking directly to senior executives, dealmakers and other key players in over 60 locations globally, Mergermarket reports on the whole deal life cycle, from mapping out companies’ early stage strategic intentions to tracking deals before they develop and providing real-time news on live events, thereby creating a large window of opportunity. Subscribers can also mine for trends, patterns and deal ideas using Mergermarket’s comprehensive deals database and regular data-driven editorial analysis and commentary. Visit www.mergermarket.com to learn more.
For further information: Shawna Van Esch, Citi Canada Public Affairs, Tel: (416) 947-5741, Shawna.firstname.lastname@example.org; Chrissy Carney, Public Relations Director, Tel: (646) 378-3118, Chrissy.email@example.com
Photo courtesy of Citi