Corporate Split-Ups Expected To Rise

Mergermarket, in association with RR Donnelley, has recently released the March edition of its Venue Market Spotlight (VMS) publication, presenting an overview of a study conducted on market participants' expectations for corporate breakups in the near term. Corporate breakups or demergers, usually carried out in Canada by means of a statutory plan of arrangement or a similar reorganization transaction, are a way for a corporation to separate distinct self-sufficient lines of business from one another with a view to unlocking value and creating strategic focus, or a means to separate a specific asset from the corporation where such asset is underperforming or no longer represents a strategically valuable investment for the corporation as a whole.