Corporate Tax Mergers & Acquisitions: Recent Developments

The volume of private and public mergers and acquisitions finally has picked up, with large transactions announced almost daily in business periodicals such as The Wall Street Journal and the Financial Post. In 2004, deal volume in Canada measured by value was up 30 percent over 2003. The growth has been broadly based, with 11 of 13 industry groups experiencing increased transaction levels measured by the number and/or value of transactions. Cross-border M&A is a significant feature of the Canadian market, representing 47 percent of transaction volume and 74 percent of value in 2004. The United States continues to be the primary focus of Canadian cross-border M&A, both as a target market and as the jurisdiction of purchaser companies.¹ M&A momentum has continued in 2005 with a number of multibillion dollar deals, notably the $7.7 billion Molson-Coors merger, which closed in January 2005; the $3.1 billion acquisition of Masonite by KKR; the US$2.3 billion acquisition of Bombardier