With low oil prices and an unfavourable exchange rate, forecasters may have predicted a discouraging environment for Canada's deal makers. But 2016's top deals defied the odds.
Lawyers said their "Canadian Champion" clients, be they Canadian-owned or otherwise, were faced with a lack of domestic targets. So, in order to take their businesses to the next level, they had to move out or expand their footprint in the United States and other countries. Fortis's acquisition of Michigan-based ITC Holdings and Enbridge's acquisition of Spectra Energy are prime examples.
Although the unfavourable Canada/U.S. exchange rate might have been inhibiting, many acquiring companies already had operations in the United States and so had come to terms with it. And Canadian investors seemed to back them up, confident about the benefits of consolidation.
Lexpert contributor Julius Melnitzer reports at www.lexpert.ca.
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