TORONTO — 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, according to PwC’s Capital Markets Flash released today. Volume was actually some 6% down on Q2, the advance has been at the high end of the market where Loblaw’s $13B acquisition of Shoppers Drug Mart led the quarter’s nine $1B+ deals to account for a whopping two-thirds of the total.
By sector, retail took the top spot with 3 of the largest 5 deals in Q3, the Loblaw/Shoppers deal being accompanied by CPPIB and Ares Management’s $8.7B purchase of high-end US retailer, Neiman and Hudson Bay’s $2.7B acquisition of Saks. Continuing the trend of the first half of the year, oil and gas and mining sectors remained quiet on a value basis.
Julian Brown, former Deals Partner and PwC’s Corporate Finance Leader for the Americas says, “Despite political uncertainty in the US, businesses are clearly confident in the recovery of the US consumer market and this is translating into deals in consumer-driven sectors, retail being the most direct beneficiary.”
While the near term outlook for M&A in Canada is subject to a lot of uncertainty given the shaky nature of the global recovery, PwC’s Capital Markets Flash notes certain areas where the future looks clearer:
For more information, including a full copy of PwC’s Capital Markets Flash, which reviews and discusses Q3 2013 deals and trends more comprehensively, please visit: http://www.pwc.com/ca/deals. A copy of the report is also available from the media contacts.
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1 Source: Kennedy; “Business Advisory Services Marketplace 2012”; © BNA Subsidiaries, LLC. Reproduced under license.