What's Trending in Canadian Mergers & Acquisitions Today

As of March 4, 2025, driven by a combination of economic factors and strategic corporate moves. Industry experts point to lower interest rates, a stabilizing economy, and a weaker Canadian dollar as key catalysts making Canadian firms attractive targets, particularly for U.S.-based buyers.

KPMG Canada forecasts a robust year ahead, with nine in 10 Canadian CEOs considering acquisitions within the next three years to fuel growth. John Cho, national leader for KPMG’s deal advisory practice, noted that recent interest rate cuts by the Bank of Canada and the U.S. Federal Reserve, coupled with declining inflation, are "breathing life" into the M&A market. "As the cost of capital eases, 2025 could be one of the busiest years for M&A in quite some time," Cho said in a statement.

A notable trend highlighted in posts on X is the surge in U.S. companies acquiring Canadian firms, fueled by favorable currency exchange rates and competitive valuations. Analysts suggest this dynamic reflects a perception that "Canada is for sale," with recent buyouts showcasing American dominance in cross-border deals.

Private equity is also playing a significant role, with firms sitting on record levels of capital poised to drive mid-market transactions and exits. PwC Canada reports that deal volumes have stabilized over the past year, with optimism growing for an uptick in activity through 2025, particularly in sectors like technology, financial services, and infrastructure

Bennett Jones, a prominent Canadian law firm, predicts increased M&A in mining, energy, and telecommunications, with standout deals from 2024 — such as Canadian Natural Resources Limited’s $6.5 billion acquisition of Chevron’s Alberta assets — setting the stage for further consolidation. The firm also anticipates a more merger-friendly regulatory environment in the U.S., which could boost cross-border activity.

Technology remains a hot sector, with Canadian tech companies increasingly going private amid interest from well-capitalized U.S. private equity firms. Artificial intelligence is expected to influence deal strategies, as firms seek to integrate cutting-edge capabilities.

Despite global uncertainties, including potential U.S. trade policy shifts under a new administration, experts remain bullish. "Dealmakers are on solid ground," a Bennett Jones report stated, citing fewer obstacles and growing opportunities in Canada’s M&A landscape.
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