Canadian 2013 merger and acquisition activity is off to a slow start, finds a Q1 2013 roundup released by Mergermarket.
It says the first quarter of this year produced only 124 deals worth US$14.4 billion. This is a 59% decrease by value and 11% drop by volume over the same period in 2012.
Last quarter’s performance was also the lowest-valued Q1 since 2010.
The report says, “Cross-border activity was divided in development compared to Q1 2012. Outbound deals increased 49.9% by value from the comparable period last year…Meanwhile, inbound activity dropped 64% by value from Q1 2012, going from US$19.3 billion to US$7 billion.”
It adds the energy, mining and utilities sectors topped the list by claiming 52% market share by M&A deal value (US$7.6 billion).
Read: Mining deals set to pick up in 2013
The lowest deal volume was posted by the real estate sector since “it closed the first quarter with only three [mergers and acquisitions].” However, these were worth a combined value of US$3.4 billion.
“The top deal [involved] H&R Real Estate Investment Trust’s US$2.9 billion acquisition of Primaris Retail REIT,” says the report.
Read: REITs offer long-term stability
BMO Capital Markets and Merrill Lynch were the most profitable advisory firms in terms of mergers and acquisitions, while Cassels Brock & Blackwell was the top legal advisor.
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