The global financial markets’ gradual recovery since 2008 continues to dovetail with unprecedented levels of interest in Canada's resource sector. The result has been an explosion of M&A activity in the Canadian energy industry, marked by the return of financial buyers and strategic investors pursuing acquisitions in order to increase earnings and gain both operational and technological expertise.
There is every reason to think this trend will accelerate and expand. Mega-deal activity is set to continue in the Canadian energy sector, characterized by creative deal structures such as partnerships, joint ventures, minority investments and long-term supply arrangements.
Price and valuation volatility, along with debt and liquidity issues, will significantly affect M&A, consolidation and divestitures activity. Despite signs of financial recovery, the gap between buyers’ and sellers’ expectations will likely lead to more unsolicited and hostile bids. Legal loopholes and market underperformance will drive greater shareholder activism. Foreign energy companies continue to enter Canada and will change the nature and practices of our domestic industry.
In this rapidly fluctuating environment, Blakes is proud to boast an extraordinary depth of talent and resources in the energy/finance field. More than 100 M&A lawyers and more than 100 energy law practitioners throughout our Canadian and overseas offices constitute an exceptional cross-border capability for our clients every day. We believe that no other firm can combine our expertise in M&A, competition, securities, tax and environmental law with our thorough understanding of the oil and gas industry’s business and legal environment.