Canada: Foreign investment drives M&A

Author: | Published: 1 Dec 2006
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Canadian M&A had a record-breaking 2006 as foreign investment and private equity transactions drove further growth.

Deals targeting Canadian companies more than doubled in value in the first 10 months of 2006 compared to the same period last year, thanks to some notable international bids.

Swiss-based Xstrata finalized its $21.2 billion takeover of Falconbridge, the largest all-cash offer in Canadian history, after rival Canadian bidder Inco was itself bought by Brazil's CVRD for $17 billion.

National M&A also remains strong. Barrick Gold acquired Placer Dome for $10.4 billion in the largest-ever unsolicited Canadian transaction to be completed, while Goldcorp bought American Glamis Gold in a deal worth $21.3 billion.

Law firm Osler Hoskin & Harcourt confirmed its international status, advising Glamis Gold throughout its acquisition and representing Texan-based ConocoPhillips in its $10.7 billion joint venture with EnCana. The top tier firm made the highest collective value of completed deals involving Canada for a second consecutive year.

Davies Ward Phillips & Vineberg also had a successful year, advising Xstrata and Barrick Gold in their high-profile deals.

The boom comes as part of a global increase in private equity transactions - although North America and the UK continue to lead the way, private equity activity is rapidly increasing in continental Europe, China and India.