February 04, 2016
A new federal government, a weak Canadian dollar and strong investment appetite from domestic firms are just some of the levers working on the mergers & acquisitions landscape in Canada, which, according to some industry experts, will fuel a rise in deal activity in the year ahead. Partners and co-heads of our M&A Practice John Emanoilidis and Cornell Wright offered their analysis of the major forces at work in 2016 in Canadian Lawyer Magazine. Below is an excerpt of the article.
“We know many of the players who are influential in the government and I think what they bring to the table is a very thoughtful approach,” says Cornell Wright, co-head of the M&A practice at Torys LLP. “I think you’ll see a very evidence-based approach, whereas I think in the past there has been a concern about . . . an overly secret, potentially more political approach. Certainly, people are hopeful that what you will see is more transparency and inclusion and consultation, and an approach that is very much focused on doing what is right for the public interest and for all the relevant stakeholders, business and otherwise.
For outbound investment, still tempting despite the weaker Canadian dollar, the pension funds will remain big players, if only because the domestic market is too small for investments of the scale for which they are looking. “Our Canadian pension funds are some of the most active dealmakers in the world, some of the most sophisticated dealmakers in the world, and the Canadian market is not large enough for them, so they have been going abroad to diversify their assets and I think that is a trend we are going to continue to see in 2016,” says Emanoilidis.
To read the full article, click here.
To read more on 2016 dealmaking trends in our M&A Top Trends 2016 report, click here.