Home Markets Canadian M&A jumps 28% in third quarter, market volatility could slow deals

Canadian M&A jumps 28% in third quarter, market volatility could slow deals

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The moon rises behind the skyline and financial district in Toronto, November 25, 2015. REUTERS/Mark Blinch/File Photo

TORONTO, Oct 7 (Reuters) – Canadian mergers and acquisitions activity for the third quarter hit its highest since 2016 as historically low interest rates and strong equity markets helped companies to revive transactions that were put on hold due to the pandemic.

Dealmaking rose 27.7% to $76.6 billion in the third quarter of the year, but was significantly down from the record $120.3 billion recorded in the first three months of the year, according the Refinitiv data.

Bankers said while factors underpinning M&A exists and pipelines are strong, equity market volatility could slow the deal momentum.

“Higher deal flow in the third quarter was driven by a combination of factors including strong equity markets, historically low borrowing costs and market confidence in a gradual COVID-19 recovery,” said Jake Lawrence, Group Head and CEO,…

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