Canadian takeover activity fell sharply in the third quarter. The value of deals targeting domestic companies dropped 45 per cent year over year to US$28.3 billion, while deal volume fell 67 per cent to 227 announced transactions, according to London Stock Exchange Group data, the sharpest year-over-year drop for a quarter since 2022. (The Logic)
Talking point: The slowdown comes as deal makers contend with higher financing costs, trade uncertainty and shifting expectations around inflation and interest rates, which can make buyers more cautious and weigh on valuations. Gesta Abols, an M&A partner at Fasken, told The Logic the market remains relatively resilient, however, noting that Canada’s smaller deal market means a handful of large transactions can cause it to swing sharply. The quarter’s weakness was also more acute for Canadian targets than elsewhere: the value of all deals involving a Canadian buyer or seller fell 22 per cent year over year to US$68.5 billion, while global M&A value declined about 12 per cent. Canadian-target M&A value is down 16 per cent year to date, pointing to a broader decline.
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