PwC Capital Markets Flash

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.