PwC Capital Markets Flash

Volume 5, Issue 13 | October 18, 2012

Q3 Report: 91 days, 599 deals, $59 billion

The third quarter of 2012 saw 599 announced Canadian M&A transactions worth $58.6 billion. Volumes were down 17% from Q2 2012 and 21% from the same period last year. Conversely, deal values surged 23% over the prior quarter and 16% over Q3 2011. This divergent behaviour is due to the $19 billion pending acquisition of Nexen Inc. (Nexen) by China National Offshore Oil Company Limited (CNOOC). Excluding this transaction, deal values would have declined 17% from Q2 2012 and 22% from the same period last year.

  • The mega deal between Nexen and CNOOC propelled energy to the top of the five most targeted industries in Canadian M&A, unseating real estate from its Q2 perch. Also contributing to energy’s outperformance was the acquisition of a 49% stake of Talisman’s UK North Sea business by China’s top refiner Sinopec Corp.
  • Media made a rare appearance in the top five targeted industries on the strength of CPP Investment Board’s (CPPIB) consortium purchase of Suddenlink Communications (Suddenlink) and Cogeco Cable Inc.’s (Cogeco) acquisition of Atlantic Broadband (Atlantic).
  • Foreign acquisitions by Canadian entities continued to be strong, totalling $18.9 billion in Q3 2012, a modest decline of 13% compared to Q2 but still 23% ahead of the tally from Q3 2011. On the other hand, domestic M&A activity slumped 47% from Q2 and 50% when compared to the same period last year.

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Capital Markets Flash - October 18 2012 Capital Markets Flash: Q3 Report
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