PwC outlines four trends to watch for in Q4
TORONTO, Oct. 28, 2013 /CNW/ - Canadian M&A activity rose sharply in the
third quarter of 2013 on a value basis, to US$54.8 billion from US$38.9
billion in Q2, according to PwC's Capital Markets Flash released today. Volume was actually some 6% down on Q2, the advance has
been at the high end of the market where Loblaw's $13B acquisition of
Shoppers Drug Mart led the quarter's nine $1B+ deals to account for a
whopping two-thirds of the total.
By sector, retail took the top spot with 3 of the largest 5 deals in Q3,
the Loblaw/Shoppers deal being accompanied by CPPIB and Ares
Management's $8.7B purchase of high-end US retailer, Neiman and Hudson
Bay's $2.7B acquisition of Saks. Continuing the trend of the first half
of the year, oil and gas and mining sectors remained quiet on a value
Julian Brown, Deals Partner and PwC's Corporate Finance Leader for the
Americas says, "Despite political uncertainty in the US, businesses are clearly
confident in the recovery of the US consumer market and this is
translating into deals in consumer-driven sectors, retail being the
most direct beneficiary."
While the near term outlook for M&A in Canada is subject to a lot of
uncertainty given the shaky nature of the global recovery, PwC's Capital Markets Flash notes certain areas where the future looks clearer:
Canadian pension funds and real estate players will continue to acquire
assets both locally and globally.
The Canadian middle market, which has been a consistent and stable
source of deals nationally throughout economic ups and downs, is also
poised to continue to fill the domestic deal pipeline.
Economically diverse Canadian regions that have performed well during
the slowdown in the natural resources sector will continue to be
characterized by steady growth and stability.
The effect of China's appetite for foreign acquisitions, while
temporarily absent from the natural resources sector will begin to show
itself in other sectors, notably agribusiness, a sector of significant
importance to the Canadian economy.
For more information, including a full copy of PwC's Capital Markets
Flash, which reviews and discusses Q3 2013 deals and trends more
comprehensively, please visit: http://www.pwc.com/ca/deals. A copy of the report is also available from the media contacts.
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.
About PwC's Deals Team
PwC's Deals Team (www.pwc.com/ca/deals) helps clients to achieve deal success — from concept to close and
beyond. As part of the world's largest Transaction Advisory practice1, the PwC Canada Deals Team is your gateway to an exciting new world of
emerging M&A opportunities.
About PwC Canada
PwC Canada helps organizations and individuals create the value they're
looking for. More than 5,700 partners and staff in offices across the
country are committed to delivering quality in assurance, tax,
consulting and deals services. PwC Canada is a member of the PwC
network of firms with more than 180,000 people in 158 countries. Find
out more by visiting us at www.pwc.com/ca.
© 2013 PricewaterhouseCoopers LLP, an Ontario limited liability
partnership. All rights reserved.
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1 Source: Kennedy; "Business Advisory Services Marketplace 2012" © BNA
Subsidiaries, LLC. Reproduced under license.
SOURCE: PricewaterhouseCoopers (PwC Management Services LLP)
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