https://www.miningweekly.com

Big deals surge in Q2

Big deals surge in Q2

Photo by Bloomberg

24th July 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – After a quiet first quarter, mergers and acquisitions (M&A) activity in Canada accelerated in the second quarter, according to professional services firm PwC's 'Capital Markets Flash' report.

The second quarter saw 748 deals with a total value of C$45.8-billion in 91 days. This translated into a 10% increase in both value and volume from the first quarter, and a 20% jump from the second quarter of 2013.

"We're seeing companies become increasingly aggressive, not taking no for an answer as hostile activity heats up. Valuation is high in a 'risk-on' environment, as corporate and private equity buyers search for growth and value creation opportunities,” PwC national deals leader Nicolas Marcoux said.

The report found that big deals valued at $1-billion and more, saw the biggest increase – 10% year-on-year in volume and a massive 39% in value. The mid-market $100-million to $500-million deals segment also experienced significant growth, with 30% sequential growth in volume and 20% growth in value.

PwC said cross-border deals were prevalent, with a 35% increase in inbound deal value and 26% in outbound deal value from the first quarter of the year. The domestic deals picture told a different story, however, as these declined by 28% in value from the first quarter.

By sector, commodities took the lead in both value (energy) and volume (mining). However, the quarter's largest deal came from the consumer discretionary sector in Blackstone's $7.3-billion acquisition of Pinafore Holdings.

Further, the Capital Markets Flash found that Russia's 30-year supply deal with China has added a new layer to international competition for liquid natural gas projects and increased the urgency for new technology to lower the cost of production. Canada would need to move quickly if it wants to be seen as a major player in the market.

Medical marijuana, Canada's "budding" new sector, saw Tweed become Canada's first publicly traded medicinal marijuana (MMJ) company on April 4, representing a new and rapidly growing industry, aided by regulatory and legislative reform. In 2014, there were some 30 M&A transactions in the MMJ space in the US and Canada.

After several slow years, M&A is on the rise again in the Canadian trucking industry. Big companies are getting bigger, while many mid-sized companies were either being acquired or were struggling.

Edited by Creamer Media Reporter

Comments

Showroom

Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 
Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Gold, hydrogen, mining boost make headlines
Gold, hydrogen, mining boost make headlines
15th March 2024
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.202 0.237s - 90pq - 2rq
Subscribe Now