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Canada’s oil patch set for biggest M&A wave in a decade
Deal activity has topped $30 billion this year, and projected full-year totals could exceed the $53 billion level seen in 2017.
OilPrice reports that Canada’s energy sector is on track for its biggest merger and acquisition wave in nearly a decade, as companies pursue new combinations amid higher oil and asset prices and the backdrop of the Middle East conflict.
The outlet notes that the most recent large consolidation push came in 2017, when major firms exited oil sands interests amid margin shifts toward U.S. shale and environmental concerns tied to ESG investing.
OilPrice points to current-year deal momentum, saying Canada’s oil patch has already recorded more than $30 billion in M&A so far this year, with Wall Street projecting the final 2024 tally will surpass the $53 billion recorded in 2017.
While OilPrice describes the 2017 wave as partly driven by asset disposal pressures, it says this year’s activity is largely coming from “positions of strength,” citing Fuelled Inc. CEO Raj Singh, who said the dynamic is healthier and tends to produce more durable combinations.