Corporate Mergers & Acquisitions

Oil sands M&A expected to heat up

Canadian Business reports merger and acquisition activity is expected to increase in Canada's oilpatch this year, as energy executives take a brighter view of their sector's prospects, according to a study released Wednesday. But the positive outlook is dampened somewhat by cost escalation for labour and equipment, the Ernst & Young report said.

In 2010 Canadian energy M&A activity was dominated by oil sands. While the $4.65bn Sinopec-Syncrude deal was the largest the total the number of oil sands transactions tripled.

PwC: Iron ore represents 48% of Canadian metals M&A activity

Big4 reports in Canada, 39 metals deals have been announced in 2011, including five transactions valued at US$50m or more. Iron ore was the most targeted resource in Canada and globally last quarter, accounting for nearly half (48%) of all Canadian deals and almost 22% of all global transactions in Q1. According to a new PwC report, the value of Canadian metals deals more than doubled year-over-year and a heightened pace of mergers and acquisitions (M&A) activity is expected for the balance of 2011.

With slim pickings elsewhere bankers start targeting mines

All the money sloshing around in the financial system has to be poured into something.

The latest study of mergers and acquisitions in the resource sector show that two of the four biggest deals of 2011 worth over $3bn are financial companies taking over natural resource companies, not strategic investments by other miners.

Lower down the scales – deals worth $50m or more – financial investors are also finding ways in. In 2009 only 3.6% of transaction involved investment houses and corporate takeover artists. By the first quarter of 2011 that figure had jumped to 16.1%.

Canada eclipsed China in mining M&A: PwC report

China may have dominated mining news headlines over the past year, but it is a small player when it comes to mergers and acquisitions, according to a report released today from PwC.

The Mining Deals report states that in 2010, just 6% of global mining involved purchases by Chinese companies, compared to 36% from companies domiciled in Canada, 16% in the US and 16% in Australia.

The numbers appear to dispel the myth that China is amassing control of the world's resources by merging and acquiring firms into its orbit.