Yesterday Price Waterhouse Cooper released its Q2 M&A report on the 721 deals worth $47.7 billion announced in that quarter, and there were a few surprises. Although deal volumes, as expected, declined 7% over Q1 and 14% over Q2 2011, many Canadian entities are focusing on foreign markets, including Europe. In Q2 Canadian acquisitions into foreign markets hit $21.8 billion, with $15.1 billion of that headed into Europe. Other notable markets were Chile and South Korea who accounted for 74% of the almost $2.1 billion spent in struggling growth markets.
The report also noted that although there was a decline in deals valued at over $1 billion, the middle market M&A deals segment, from $100 to $500 million, rose in both volume and value by 21% and 35% respectively. In addition, during Q2, Ontario overtook Alberta as the most targeted province by value, with 35% of all deal value to Alberta’s 21%.
Interestingly, cancelled deals also dropped to a record low with only 12 deals being cancelled during Q2 after being announced.
We continue to remain optimistic about M&A activity both in Canada and internationally.