Globe & Mail Extract Many Canadians are in lockdown. Canadian companies, however, are on the road in the pandemic, launching takeovers at a record-setting clip and creating a deal-making boom that’s seeing domestic firms emerge as international players.
There has never been more mergers and acquisition activity - or more megadeals worth more than $1-billion - and the M&A rapid pace is expected to continue for the foreseeable future. As CEOs, bankers and lawyers prep for the next big deal, there’s also surging interest in one of Bay Street’s favourite games - spotting the next takeover target. Hedge funds and analysts are working flat out, and taking stakes in companies that could see their shares soar if a buyout comes their way.
The M&A surge began late last year, as corporate leaders realized ramping up vaccination programs for COVID-19 would translate into strong economic growth. Toronto-based insurer Intact Financial Corp. along with a Danish partner, were among the first to move, striking a $12.4-billion friendly takeover for British rival RSA Insurance Group PLC. “Market sentiment changed last fall,” said John Emanoilidis, co-head of the M&A group at law firm Torys LLP. “The level of confidence surged among CEOs and boards, and that always bodes well for transformative deals.”