March 08, 2013
With the U.S. becoming increasingly self-sufficient in meeting its energy needs, some senior executives from Canada and the U.S. believe restricting state-owned enterprises from owning a majority of oil sands assets may have been a mistake. "Opinion is divided. There are those who believe we may have done ourselves no favours by restricting SOE majority investment," said Ron Deyholos, a lawyer with Tory LLP, which recently published a survey of senior executives from Canada and the U.S. on Canada's energy merger and acquisitions activity. The survey was largely bullish on Canadian M&A prospects over the next 12 months. "Almost 66% of the senior executives and industry stakeholders that participated in the Tory survey believe that the overall volume of oil and gas M&A will increase in Canada over the next 12 months," said the firm in the report describing the results of a survey conducted in partnership with Mergermarket Group. "And 75% of respondents did not expect regulatory risk in connection with a foreign investment in the Canadian oil and gas sector to be an impediment to deal activity over the next year."