November 02, 2016
A recent article from Reuters highlighted the slowdown in mergers and acquisition activity in the Canadian energy patch since the drop in oil prices two years ago. As a result, deals are shifting to the E&P or upstream segment, which carries both a higher risk and reward. Partner Janan Paskaran is quoted in the article in reference to the increased pressure from lenders and bondholders for energy companies to conduct more asset sales. Below is an excerpt.
"There are not as many buyers as there are sellers," said Janan Paskaran, partner at Torys LLP. "There's still a big pricing gap, and the only way for companies to get deals done is to let go of a crown jewel or one of their best assets."
To read the full article, click here.