While Vancouver may not be considered a hub of head offices in Canada, the big businesses that are here have generally been increasing their global presence over the past few years.
Since 2009, the total value of merger and acquisition activity by B.C. companies has outpaced the amount of M&A deals by non-B.C. companies.
Based on BIV’s lists of the biggest 50 M&A deals, acquirers based in B.C. have accounted for more than $50 billion in deal activity between 2009 and 2012. That compares to $40 billion in M&A activity by national and global companies based outside B.C.
And aside from 2011, the number of B.C. buyers in the province’s biggest deals have outpaced non-B.C. buyers over the past four years.
Some of the most notable expansions in the past year include:
•MDA’s $875 million acquisition of Space Systems/Loral;
•Canaccord’s $395 million purchase of U.K.-based Collins Stewart Hawkpoint plc;
Much of the activity has been in B.C.’s mining sector, which has remained a global hub with its wide range of companies ranging from junior exploration firms to some of the largest producers in the world. According to data from the lists, $61.4 billion in mining-related acquisitions have occurred in B.C. over the past four years.
The number of big mining deals in B.C., has struggled in recent years. For the first time since the global financial crisis, less than half of the 50 biggest M&A deals in B.C. last year were mining-related.
While the mining sector continues to face challenges in the capital and global commodity markets, it’s likely to remain a major source of corporate finance activity for years to come whether through friendly or hostile takeovers, or through alternative financing sources like those being offered by Vancouver’s Silver Wheaton and Sandstorm Gold, Denver’s Royal Gold or Toronto’s Franco-Nevada Corp.
Phillip Heywood, PwC’s Vancouver mining transaction services leader, noted: “I think we’re starting to see streaming companies becoming more mainstream project financing for the development of new mines. That will continue to be a phenomenon.”
