Look now – this is not something you will likely see again.
Two thirds of the way through 2013 and Canada is by far the busiest nation in the world for mergers and acquisitions in the retail business. Given the size of the Canadian economy, that is a rarity.
Megadeals by Loblaw Cos. Ltd. and Sobeys Inc. are behind the turn of events.
Figures from Thomson Reuters show that Canadian retailers have laid out $22.4-billion (U.S.) on acquisitions, tops in the world. Canadian retailers worth $19.7-billion have been targets of acquisitions, also tops.
The unfortunate thing for Canadian banks is they are not reaping too many of the gains from retail mergers. Even with Canada generating so much activity, only Bank of Nova Scotia makes the top 10 banks globally this year for investment banking fees received from retail deals. Bank of America Merrill Lynch, Goldman Sachs & Co. and JPMorgan Chase & Co. are the top three. Scotiabank is in eighth spot.
(Boyd Erman is a Globe and Mail Capital Markets Reporter & Streetwise Columnist.)
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