Canadian M&A Q2 2013 results have not provided the desired relief from lacklustre Q1 results. However, while not much of the lost ground was gained, the sharp decline in M&A activity experienced in the first three months of 2013 appears to have subsided.
According to Bloomberg’s recently published M&A Rankings, these results are in line with global M&A trends. Although global M&A volume decreased by 10% from the same period last year, it increased by 3% to $489 billion from Q2 2013. Deal making activity was highest in the Americas, where Canada was second only to US in rankings of the top acquirers and top targets.
PricewaterhouseCoopers (PwC) reports that the average deal size in Canada in the sub-billion bracket increased from $51.0 million in Q1 to $62.9 million in Q2, with the majority of the deals concluded in sub- $100 million bracket.
According to PwC, among the most notable trends in the Canadian market is non-traditional activity in food and staples, retail and mining sectors. With big acquisition transactions in the food retail industry (including those completed or the subject of definitive agreements), PwC predicts more to follow, as major players are looking at more vertical or horizontal integration through acquisitions of niche companies and partners.
While mining M&A remained in a slump due to commodity price volatility and growing concern over a potential slowdown in emerging market growth, non-traditional investors like private equity funds and Asian based investors are starting to look at the sector more seriously.