TORONTO — Despite continued macro-uncertainty, Canadian companies were very active in Europe during Q2 2012, announcing $15.1 billion worth of deals on the continent—a post-crisis quarterly high. Overall, the quarter saw Canadians active in a number of foreign markets. $21.8 billion of acquisitions were announced in 40 countries outside of Canada, including 27 growth markets, one of the highest outbound deal values on record.
“Canadian firms are combating slow domestic growth by making acquisitions abroad,” says Nicolas Marcoux, Canadian Deals leader at PwC. “Quite often, M&A can be utilized as a tool to achieve growth as well as a means to innovate.”
The middle market segment of the Canadian M&A market also picked up steam during Q2 with 51 transactions worth $12.2 billion announced, up 21% and 35% respectively over the prior quarter. According to Marcoux, “These results are not surprising to us. Many corporates and private equity firms have been publicly stating their desire for bolt on acquisitions for some time.”
Other observations in the PwC Q2 2012 deals report (available at www.pwc.com/ca/quarterlydeals) included:
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