Canadian M&A seen picking up in 2018 on market rally, U.S. tax reform: Reuters
Rising equity markets and clarity on U.S. tax reform could set the stage for an acceleration in Canadian mergers and acquisitions this year after a slowdown in 2017, investment bankers told Reuters. Canadian M&A activity slipped 6 percent in 2017 to US$239.7 billion, from US$255.1 billion in the previous year, data from Thomson Reuters showed on Thursday. While uncertainty around the tax regime weighed on deal activity in 2017, bankers expect the recently passed changes to the U.S. tax system to boost the allure of U.S. companies to Canadian firms and funds looking to make acquisitions. With Canadian and U.S. stocks at record highs, bankers also see buoyant equity markets supporting deals. Pension funds are expected to fuel deal activity as they look to invest massive capital pools.
