M&A hits US$82 billions in Q2 amid tariff threats, while Ottawa targets July 21 for US trade deal
Canadian companies struck nearly US$82bn worth of M&A deals in the second quarter—an 84 percent jump from the same period in 2024—as per LSEG Data & Analytics, despite an uncertain trade climate driven by US tariff threats.
According to The Globe and Mail, the quarter saw several multibillion-dollar transactions, including:
- Parkland Corp.’s $7.7bn sale to Sunoco LP
- A $5.9bn bid by Strathcona Resources Ltd. for MEG Energy Corp.
- A $2.2bn deal involving Andlauer Healthcare Group Inc. and United Parcel Service Inc.
- Definity’s $3.3bn acquisition of the Canadian arm of Travelers
- A $2bn insider offer for InterRent Real Estate Investment Trust
Peter Castiel, chair of Stikeman Elliott LLP—the top legal adviser for M&A deals in the first half of the year—told The Globe and Mail that deal activity has been largely “segment and industry focused.”
He identified infrastructure, energy, opportunistic real estate, software, synthetic financings, and restructurings as the main areas of focus.
He added that large companies are “quite active and quite opportunistic in terms of depressed values in the market.”
Equity markets also rebounded. Data from LSEG showed that stock sales totalled $6.85bn in Q2, up more than 33 percent from the $5.14bn sold in the same period last year.
While the total remains 25.8 percent below the 10-year Q2 average of $9.24bn, there are signs of upward momentum.
“The response to both was overwhelmingly positive in terms of investor engagement,” said Jackie Nixon, head of Canadian equity capital markets at RBC Capital Markets, as reported by The Globe and Mail.
She added that both deals also performed strongly in the aftermarket.
According to The Globe and Mail, RBC led two major deals in June: a $385m private placement for Definity Financial Corp. and a $2bn bought deal for Keyera Corp.
Nixon also noted renewed dialogue around public markets.
“I’m not expecting the floodgates to open this year in terms of IPOs,” she said. However, she noted that there is now a more active dialogue with private companies.
Toronto-Dominion Bank ranked third for Canadian stock underwriting in the first half, according to LSEG. Globally, TD was the only Canadian bank to appear in Dealogic’s top 10 for equity issuance.
As per The Globe and Mail, Sante Corona, TD Securities’ global head of equity capital markets, attributed this to the bank’s 2022 acquisition of Cowen Inc., calling the global placement “early signs that the combination is working.”
Corona pointed to two key deals: TD’s $20bn stake sale in Charles Schwab Corp. and its role as sole bookrunner in GameStop Corp.’s US$2.7bn convertible debt offering in June.
“These deals are indicative of what we can do,” he said.
Debt issuance, however, saw a pullback.
The Globe and Mail reported that corporate borrowing totalled $22.6bn for the quarter, a one-third drop from 2024 levels.
RBC’s Patrick MacDonald linked the decline to investor reaction following US President Donald Trump’s April 2 “Liberation Day” announcement of global tariffs.
“There was a drastic drop in the month of April,” he said. However, he noted that confidence returned quickly, with May and June described as “extremely active”—a welcome shift after the challenges seen in April.
