Cross-border M&A Is Booming

The Canadian deal markets are thriving.

As the COVID-19 vaccination program continues to roll out across North America, corporate Canada's decision-makers are putting domestic and cross-border growth plans to work, taking advantage of the robust economic outlook in pursuit of strategic transactions. Low debt funding costs, strong equity markets and the abundance of capital are underpinning the healthy environment for M&A, and all indicators suggest that the dealmaking momentum should persist into year end and beyond.

Canadian domestic M&A

The volume of domestic deal activity year to date has increased by 49% as compared to same period last year. Aggregate deal value has also tripled as large domestic plays point to the confidence of boards and CEOs in the current environment (Figure 1). For example, earlier this year Rogers Communications Inc. and Shaw Communications Inc. announced an agreement under which Rogers will acquire all of Shaw's issued and