Canadian M&A Industry Insights – Summer 2023

Canadian M&A activity has declined in deal volume in 1H 2023 compared to 1H 2022 but has increased in disclosed implied enterprise value (EV) – mostly attributed to a few megadeals that closed during the period. General economic uncertainty, inflationary pressures and increasing interest rates have led to a slight slowdown in transactions. In 1H 2023, 848 Canadian companies were sold, with the total disclosed EV amounting to CA$72.4 billion, indicating an 8% decrease in deal volume compared to 1H 2022.

1H 2023 saw 28 megadeals close, averaging $4.2 billion in EV, an increase from 1H 2022, which had 22 recorded closed megadeals*. The largest Canadian transaction in 1H 2023 was the acquisition of Shaw Communications for $26.2 billion by Rogers Communications. The second- and third-largest megadeals in 1H 2023 involving a Canadian party were the acquisitions of National Grid Gas and Qualtrics International for $18.6 and $15.0 billion, respectively.

Significant megadeals announced in 1H 2023 but not yet closed include Bunge Limited’s acquisition of Viterra Limited for $23.9 billion, ConocoPhillips’ acquisition of Surmont Oil Sands Project for $8.4 billion and Suncor Energy’s acquisition of Total E&P Canada for $6.1 billion.