News Formal

Canadian Companies Urged to Take Risks as Deal Activity Slumps

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 29 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 50%

Business News

M&A,Canada,Investment Banking

Investment bankers in Canada are calling on listed companies to increase mergers and acquisitions (M&A) activity and raise capital as deal volumes hit a 23-year low. Equity and equity-linked offerings in Canada have declined for three consecutive years, reaching their lowest point since 2001. While investors show appetite for growth-oriented companies, the scarcity of deals is attributed to a lack of risk-taking by Canadian businesses.

Ian de Verteuil, equity strategist at CIBC Capital Markets, discusses how Trump’s tariff threats could impact the 2025 market outlook.

The activity stands in sharp contrast to the US, where such offerings have climbed for the third straight year, data compiled by Bloomberg show. In a clean deal, banks are able to smoothly sell securities of a transaction they underwrote, whereas in a hung deal they may need to offer deeper discounts or risk being stuck with unsold inventory.

RBC and BMO have dominated the rankings for five straight years — one of the two banks have finished top of the table every year since 2019. This year, those two banks accounted for 34% of the total offerings.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Canadian media companies sue OpenAI over alleged copyright infringementLawsuit alleges ChatGPT developer has unlawfully scraped articles and ‘unjustly enriched’ itself at the expense of news outlets
Source: globebusiness - 🏆 31. / 66 Read more »

These companies have laid off Canadian workers in 2024Canadians are continuing to be laid off as part of a wave of job cuts that began in 2023 as companies assessed their operations after the height of the COVID-19 pandemic passed.
Source: SooToday - 🏆 8. / 85 Read more »

‘A recipe for stagnation’: Canadian companies widely underusing newcomer talent, report findsThe ICC-Deloitte report suggests that employers can tap into newcomer talent more effectively if they adopt a ‘culture of ambition’
Source: globebusiness - 🏆 31. / 66 Read more »

'A recipe for stagnation': Canadian companies widely underusing newcomer talent, report findsThe ICC-Deloitte report suggests that employers can tap into newcomer talent more effectively if they adopt a 'culture of ambition.'
Source: BurnabyNOW_News - 🏆 14. / 77 Read more »

Huge share of Canadian companies plan on hiring for new jobs in 2025If you're looking for a career change in 2025, there's some hope as a significant portion of Canadian companies are planning on hiring for new positi…
Source: blogTO - 🏆 44. / 63 Read more »