December 5, 2024
Following several years of pandemic disruptions 2024 saw a resurgence in M&A deal activity. Partner and co-head of Torys’ M&A practice Michael Amm spoke with Canadian Lawyer about the factors that have contributed to this resurgence, and how that will carry over to 2025.
“In 2021, which was probably the biggest year by transaction value in the last decade, … there were 105 deals with Canadian public targets, totalling $95 billion,” Michael said. The following two years saw deal values plummet to just $39 billion in 2022 and $22 billion in 2023.
“2024, by contrast, has started to grow very strongly,” Michael said. In particular, he points to 93 deals that have already amassed $62 billion in value.
This is a key indicator that M&A activity is rebounding; however, there are a number of complexities to consider, including increased scrutiny around foreign investment.
“There’s clearly an increased vigilance … particularly affecting buyers from China and Russia,” Michael said. Critical minerals—which are essential for the growth of many industries, such as production of electric vehicle batteries—is one area that has received considerable attention.
“Canada and other Western countries have come out with some pretty strict investment screening on critical minerals deals,” Michael said. Across industries, assertive regulatory and legal environments are becoming increasingly difficult to navigate, he notes. “It’s certainly becoming harder, and that makes deals harder to do.”
Adding to this complexity is shareholder activism, which has intensified in the years following the pandemic and resulted in boards being more focused on pursuing sustainable transactions. “There's a general sense of greater discipline amongst boards and management teams in terms of the transactions that they do, and that is a good thing for the space,” Michael said.
Looking ahead, Michael notes that Canada’s M&A activity could see a shift under a Trump administration, particularly with potential tariffs and trade policy changes being implemented. However, overall, Michael’s outlook for M&A in 2025 is positive.
“We have good conditions for M&A to continue its trajectory,” he said. “I'm optimistic, but there are things on the horizon that we need to watch out for pretty closely.”
Press Contact
Richard Coombs | Senior Manager, Marketing
416.865.3815