Reaching New Heights: The outlook for Canadian M&A in 2018

26 February 2018

Download Publications (3.13 MB)

Dealmakers are optimistic for value and volume increases in Canadian M&A over the next year. A growing economy, strong consumer spending, cash-rich corporate balance sheets, and firming oil prices will help to push domestic activity. Beyond the energy sector, tech looms large in the minds of Canadian dealmakers, especially when it comes to cross-border activity. Meanwhile, an anticipated drive by corporates to enter new markets has dealmakers predicting that Asian countries will have the most cross-border targets for Canadian acquirers, and the most buyers of Canadian assets.

In order to understand how Canadian M&A activity will perform in 2018, Citi commissioned Mergermarket to interview 50 senior dealmakers for their insights.

Key findings of this report include:

  • About three-quarters of respondents believe Canadian M&A activity will increase in 2018, both in volume (78%) and value (74%).

  • The energy sector was voted as the top area to see the biggest increase in both domestic and inbound M&A activity for 2018, while technology, media & telecoms M&A is expected to see the most for outbound activity.

  • Top challenges for Canadian dealmakers in 2018 according to experts include regulatory hurdles (44%), geopolitical and macroeconomic risk (42%), and uncertainty over the results of the NAFTA negotiations (40%).