Despite instability in the domestic & international markets, M&A deals in Canada are being concluded on an even bigger scale than before. And the signing of the NAFTA agreement has given this trend renewed impetus.
So, let's have a look at the key legal issues relating to the regulation of M&A transactions in Canada.
M&A Deals in Canada’s Mining & Metal Sector
There have been some major developments in the Canadian mining & metals industry lately, with the most notable deals being acquisitions of Randgold Resources by Barrick Gold Corp & purchase of Goldcorp Inc.by Newmont Mining Corp.
Given a positive outlook for the price of precious metals, deals like these are expected to give the much needed impetus to the gold mining sector.
Concluding M&A Deals in the Canadian Real Estate Market
M&A deals in the Canadian real estate sector have also invigorated the country’s M&A landscape. The purchase of Forest City Realty Trust by Brookfield Asset Management Inc.has become one of the most significant deals of the recent decade. Other major transactions included the acquisition of an Australian investment office fund by Oxford Properties Group.
Canada's largest pension funds play an important role in the acquisition of commercial real estate inside & outside the country. Some of the most notable M&A deals in the domestic market included Choice Properties’ acquisition of CREIT & Blackstone’s purchase of PIRETH.
Toronto was & still is the most active real estate market in the country in terms of acquisitions, being second only to Vancouver. Both of these cities have the lowest vacancy rates in the country.
Conducting M&A Deals in the Canadian Fuel Sector
Despite falling oil prices, oil exports from Canada have increased in volume thanks to the demand for energy from Asia. One of the biggest problems for Canada and the Canadian economy is the difficulty in shipping resources to the market, and especially when it comes to large-scale energy projects. Therefore, the best way to overcome the difficulties is to conclude M&A deals in the Canadian fuel industry.
There has been a decrease in the number of M&A transactions in the Canadian energy sector lately. The only exception to this rule is a recent deal concluded between the Canadian government & Kinder Morgan. Due to a general slump in the market, many small and medium-sized companies in the energy sector have been facing difficulties lately. Some of the biggest market players, such as Enbridge, have been selling their extraction & processing businesses & moving to other sectors
Concluding M&A deals in Canada’s Developing Sectors
Canada became the second country in the world to legalize cannabis. Being a relatively new player in this market, it is actively participating in the integration of value chains, starting with growing / harvesting and ending with retail sale. Being aware of the upcoming legalization, major players were quite active concluding M&A transactions in Canada, and more specifically, in the cannabis industry.
Canada was & still is perceived as a stable market in terms of mergers and acquisitions. By and large, M&A deals have a good effect on the economic situation in the country. The recently concluded M&A transactions in Canada have resulted in significant amounts being raised through registrations of alternative investment vehicles, such as PEFs.
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