RE:RE:M&A Fever Hits Canada's Oil and Gas Industry At the start of 2024, bankers and analysts continued to believe more energy deals are in the works in Canada.
Over the past year, there has been growing interest from U.S. companies to buy Canadian oil and gas assets, especially private U.S. firms, Brad Wells, head of energy at BMO Capital Markets, told Bloomberg in an interview this week.
While Canadian firms are in no need to add inventories, their healthy balance sheets could spur them to seek opportunistic deals that have the right economics and strategic rationale, Wells said, adding that because of the expected opportunistic nature, it is difficult to predict when the next big merger in Canada will be announced.
Still, a megadeal such as the ones being announced in the U.S. could happen in Canada, too, albeit with different rationale in mind, BMO's top energy banker told Bloomberg.