TORONTO, Dec. 20, 2012 /CNW/ - Based on results to date, the Canadian
M&A market defied gravity in 2012 surviving a 10 percent decline in the
total number of M&A deals completed with a modest rise in total M&A
deal values to approximately US $139 billion. The M&A deal value
results are surprising given Canada experienced a 50 percent decline in
deal values in Canada's biggest sector, Materials & Mining,
representing a decline of over US $18 billion over last year. The
total number of M&A deals across all sectors involving Canadians is
expected to amount to approximately 1,820 based on data provided by
The drop in actual deal volume may seem disconcerting as the Canadian
environment for M&A is strong given the robust banking market, an
abundance of equity capital and a relatively strong economic climate.
"Despite the weakness in mining and commodity prices, many other sectors
showed signs of strength, taking up the slack in mining M&A deal
value," said Peter Hatges, President, KPMG Corporate Finance, Inc.
Deal values in Consumer Products, Media and Entertainment, Healthcare
and Consumer Staples were all up sharply over last year. Highlights
The acquisition of Maple Leaf Sports and Entertainment for US $1.3
The US $6.6 billion acquisition of Cequel Communication in the United
States by a private equity consortium that included CPP Investment
Cogeco's US $1.36 billion acquisition of the Atlantic Broadband Group in
the United States
Bank of Nova Scotia's US $3.2 billion acquisition of ING Bank Canada
Valeant's acquisition of Medicis Pharmaceutical Corp in the US for US
In 2012, Canadians acquired the vast majority of the largest Canadian
M&A deals with many foreign targets being in the United States.
"Canadian companies have a lot of capital at their disposal," said
Martin-Pierre Roussel, Managing Director, KPMG Corporate Finance,
Montreal. "Canadian banks are lending, private equity is flush with
cash and the Canadian dollar is well valued - it's a significant
strategic advantage in the context of M&A deals and expanding the
geographic footprint of Canadian companies."
Changing demographics in Canada are another factor in the expected
volume of M&A transactions going forward.
"As Canadian business owners reach retirement age, a large number of
businesses and assets will come to the market in volumes not seen in
prior years and this is expected to continue to stimulate the M&A
activity in the non-mining sectors," said Hatges.
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laws of Ontario, is the Canadian member firm of KPMG International Cooperative ("KPMG International"). KPMG member firms around the world
have 152,000 professionals, in 156 countries.
The independent member firms of the KPMG network are affiliated with
KPMG International, a Swiss entity. Each KPMG firm is a legally
distinct and separate entity, and describes itself as such.
SOURCE: KPMG LLP
For further information:
National Manager, Media Relations
KPMG in Canada