Q3 2021 MARKET INSIGHTS
While Canadian M&A activity slipped from the prior quarter, dealmaking remained at close to record levels in Q3/21. Volume declined almost 8% over Q2/21, but outpaced Q3/20 by 16%. Value was, once again, propelled by a number of significant deals: CP Rail's bid to acquire Kansas City Southern, along with fourteen other mega-deals ($1 billion+) including Agnico Eagle's bid for Kirkland Lake Gold.
Geographically, dealmakers continue to reach across borders, with cross-border deal volume continuing to show strength, and a notable acceleration in inbound activity.
Note: Dollar values are in USD.
DEAL ACTIVITY
Total Deal Value & Volume (2020 – 2021 YTD)
Source: Capital IQ October 12, 2021
Where the deals are...
As always, Canada's mid-market continued to drive activity in Q3/21, comprising 91% of deal volume.1 There was, however, a 17% decline in transactions in the sub-$50 million range, partially offset by increased volume in deals in the $50-250 million value range. At the upper end of the value spectrum, mega-deal activity spiked in the quarter with 15 transactions, compared to 7 in Q2/21.
Deal Volume by Deal Size (2020-2021 YTD)
Source: Capital IQ October 12, 2021
Footnote
1 In this case, volume includes all transactions with disclosed value.
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