TORONTO, Oct. 28, 2011 — A new PwC report on Merger and Acquisition (M&A) deal activity comparing provincial buy side and sell side transactions www.pwc.com/ca/QuarterlyDeals shows that while Ontario and Quebec continue to be top investment destinations in Canada, each has lost market share to the western provinces over the past 10 years. “Canadian M&A is not just about Toronto and Montreal anymore,” says Kristian Knibutat, PwC’s Canadian Deals Leader. “These centres are still critical for deal making, but regional trends certainly point to interesting opportunities in Canada’s west, as well as in Canada’s most eastern provinces.”
The report highlights that while Ontario and Quebec continue to be among the top three investment destinations in Canada, each province has lost sell side market share over the past decade. Targets in Ontario and Quebec once represented 47% and 29%, by value, of all acquisitions in Canada. Today, the provinces market shares have declined to 31% and 22% respectively.
The report also found that:
The report says there are a number of hot topics to watch with provincial impacts in deal making. These include: the deregulation of the Canadian Wheat Board, which may provide new players with the incentive to enter the prairie provinces wheat and barley markets via M&A; Plan Nord in Quebec, which has the potential to do for Northern Quebec what the development of the oil sands did for Alberta; the shale gas revolution may prompt strategic consolidation among domestic players in order to prepare for more intense global competition; and the Liberal election win in Ontario, which paved the way for increased investment in renewable energy.
In conjunction with its provincial deals analysis, PwC also released today a report of Q3 2011 M&A deals in Canada. This report is available at www.pwc.com/ca/QuarterlyDeals and the press release at www.pwc.com/ca/media.
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1 Source: Kennedy;”Business Advisory Services Marketplace 2009-2011”; ©BNA Subsidiaries, LLC. Reproduced under license.
2 Source: Acquisitions Monthly Awards 2010.