PwC Capital Markets Flash

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Q1 2014

90 days, 679 deals, $41.6 billion: Quiet first quarter for Canadian M&A, but return of resource deals encouraging

Top 10 largest deals included three in the energy sector, which returned to the top slot by value for the first time since Q4 2012.

Although Canadian M&A activity in Q1 2014 saw a decline in both deal value and volume from Q4 2013, PwC’s Capital Markets Flash states that due to encouraging signs in the resource sectors, there is reason to be optimistic.

While Q1’s largest deal came out of the pharmaceuticals sector with Forest Labs’ $2.9 billion acquisition of Quebec-based Aptalis Holdings Inc., it was the resource industries that ultimately claimed the spotlight. Of the top 10 deals by value, three were in energy, making it the strongest sector of the quarter for the first time since Q4 2012. And the battle for control of Osisko Mining Corporation between hostile Goldcorp and "white knight" Yamana Gold showed a resurgence of mining activity after a slow period.

Also in this quarter’s Capital Markets Flash:

  • Tumbling Loonie: The report analyzes both the pros and cons of Canada’s falling dollar, and outlines which sectors stand to benefit and those that may face challenges.
  • Spotlight on Vancouver: This quarter, the Capital Markets Flash looks at the M&A market in Vancouver and what trends may lie ahead.
  • Shareholder Activism: This spotlight dives deeper into shareholder activism and examines the drivers of this market trend and the impact it is having on deal value in Canada.

Previous editions:

PwC Capital Markets Flash | Q1 2014
Top 10 largest deals included three in the energy sector, which returned to the top slot by value for the first time since Q4 2012.

PwC Capital Markets Flash | Q4 2013
Retail, real estate, utilities and pension fund activity were not enough to fill the gap left by a dearth of deals in Canada’s oil patch and mining companies.

PwC Capital Markets Flash | Q3 2013
Canadian M&A activity rose sharply in the third quarter of 2013 on a value basis, to US$54.8 billion from US$38.9 billion in Q2.

PwC Capital Markets Flash | Q2 2013
Despite a 62% increase in M&A activity in value terms over the previous quarter, Q2 2013 was the second quietest quarter since Q2 2010.

PwC Capital Markets Flash | Q1 2013
The first quarter of 2013 saw China’s growth slow, commodity prices tumble, and the Eurozone continue to struggle.

PwC Capital Markets Flash | Q4 2012
Despite a 9.6% decline in deal volumes in 2012, the aggregate value of announced deals climbed 10.5% to reach its highest level since the market peak in 2007.

PwC Capital Markets Flash | Canadian Economic Update
Although all the numbers are not yet in, it appears the Canadian economy will grow just over 2% this year, just a shade higher than forecast in the July Capital Markets Flash.

PwC Capital Markets Flash | Q3 2012
The third quarter of 2012 saw 599 announced Canadian M&A transactions worth $58.6 billion.

PwC Capital Markets Flash | Q2 2012
A state of “Canadian M&A anaemia” was the accepted wisdom during the volatile second quarter, especially in the headline "mega deal" resource segment.

PwC Capital Markets Flash | 2012 Outlook Scorecard
As we enter another Canadian summer, we thought it an opportune time to take a look back at our forecasts for the M&A market in 2012 and assess how our predictions have been panning out.

PwC Capital Markets Flash | Perspectives on Insurance M&A
Consistent with our expectations, mergers and acquisition (M&A) activity in Canada’s insurance industry continued to increase in 2011.

PwC Capital Markets Flash | Q1 2012
Against a backdrop of the slowest first quarter of global M&A in ten years, Q1 2012 continued to be a busy one for Canadian dealmakers.

PwC Capital Markets Flash | Notable Economic News
The economic outlook continues to be mixed going forward, with signs of stability in North America that will likely support a steady deal market for Canadian dealmakers.

PwC Capital Markets Flash | Q4 2011 and Outlook for 2012
For 2012, we anticipate that, absent a tail event, Canadian M&A will continue to move forward at a measured pace. This report sets out key trends from 2011, as well as five specific expectations for Canadian M&A in this New Year.