February 19, 2016
The firm's 8th annual M&A Trends seminar on February 18 featured an excellent lineup of panellists: Bruce Flatt, CEO, Brookfield Asset Management; John Thornton, CEO, Barrick Gold Canada; Maureen Jensen, in her first public appearance as chair of the Ontario Securities Commission; Darryl White, CEO, BMO Capital Markets; and our own partner and managing partner of our New York office, Karrin Powys-Lybbe. The discussion spanned the breadth of the panellists' expertise, from global market developments, including in China, to various dealmaking, regulatory and corporate governance issues in Canada. An article in the Globe and Mail spoke to some of the highlights of the conversation. Below is an excerpt of the article.
Despite the dollar's woes, domestic buyers showed an incredible appetite for foreign deals in 2015 - and we should expect that to continue this year.
The total value of all mergers and acquisitions involving Canadian companies and funds hit roughly $280-billion (U.S.) last year, according to Thomson Reuters. Of those, about 80 per cent were outbound, meaning that Canadian buyers were active abroad, rather than hollowing out our domestic champions.
We can thank our patient acquirers - the likes of Brookfield Asset Management Inc. and Ontario Teachers' Pension Plan and Caisse de dépôt et placement du Québec - for this. Because they take such long-term views, they are not so worried about short-term currency moves. About half of all outbound deal flows last year involved them in some form or another.
"I think that pattern continues and probably accelerates this year," Darryl White, head of BMO Nesbitt Burns Inc., said at an informative panel hosted by Torys LLP.
To read the full article, click here (subscription only).
For more on Canadian dealmaking in 2016, read our article "Go With the (Capital) Flow in Cross-Border M&A."
Read our full analysis on the M&A landscape in this year's M&A Top Trends.