Osler's analysis of Canada-U.S. cross-border M&A over the past five years shows growth in the strong ties held between Canadian and U.S. financial markets. The following charts each focus on a unique aspect of this relationship.

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It is evident from recent growth in M&A activity across the Canada-U.S. border that investment and deal-flow between the neighboring countries is strong. Aggregate Canada-U.S. cross-border M&A in the last twelve months rose to $187.5bn, up 14% from the twelve months prior. Overall, recent M&A activity between Canada and the United States is weighted towards outbound investment from Canada into the United States - between 2010 and 2016, 64.7% of Canada-U.S. cross border activity involved the acquisition of a U.S. target by a Canadian buyer. However, with H1 2016 seeing the Canadian dollar reach a 13-year low against the US dollar, it is reasonable to expect that cross-border deal flow attributable to inbound investment from the United States to Canada will grow.

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Canada-U.S. cross-border M&A shows a preference towards mid-size deals, with an average 60% of value being attributable to deals sized between $50m and $300m CAD, a trend that is relatively unchanged since 2010. This time period shows no significant difference in the most common deal sizes when comparing acquisitions by a US and Canadian buyer of a cross-border target. Overall, deals sized above $600m CAD account for a healthy 23% of the Canada-U.S. cross-border market since 2010.

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Large Canadian pension funds helped fuel the growth trend in Canada-U.S. cross border M&A, with the aggregate value of their involvement growing at a 76% CAGR since 2012 projected to the end of 2016. This growth occurred during a period of a declining Canadian dollar, showing the appetite for Canadian pension fund investment in the United States regardless of currency-based increases in effective asset prices.