The Canadian FS M&A Newsletter provides a market update and summary of key trends from the insurance, asset & wealth management, and banking sectors.
Global M&A activity in 2019 was robust and surpassed many historical benchmarks with the year capping out at US$3.9 trillion – the fourth biggest year for M&A deal value since records began in 1980. The year was bolstered by a strong Q4 2019 which saw a 30% increase compared to Q3 2019 making it the strongest final quarter in the last four years. Mega deals (greater than US$10 billion) were a significant driver of activity as deal value increased by 28% compared to 2018 and accounted for the largest percentage (31%) of total deals since 2015. 1
The financial services sector has continued to experience its share of activity with 753 transactions globally. Canadian financial services deal activity in Q4 2019 increased over the prior year with 32 transactions across the sector. Activity was concentrated within the insurance sectors which comprised 19 transactions and C$10.2 billion of deal value in the quarter.
The outlook for 2020 is uncertain due to the unknown short- and long-term impact of the COVID-19 virus. Our experience on the ground is that M&A transactions that are well progressed, appear to be moving forward. Though there are likely potential risks to the downside.
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