Canada’s energy industry has experiences a major influx of merger and acquisition activity, according to reports.
Twenty percent of global energy M&A deals in the first half of the year were struck in Canada, reports say, citing data from consulting firm Deloitte. Canada and the US together accounted for 61 percent of global deals.
The report is surprising, some experts say, because Canada’s energy industry has been harmed by insufficient gas pipeline capacity. “The increase came even as Canadian producers have struggled with the lack of major pipelines that can access key markets such as the United States to the south or exports on the coasts,” Deloitte said in its report.
According to reports, major energy companies like Encana have looked to reallocate assets to become more efficient, a trend that accounts for some of the M&A boost in the country.
Full content: Wall Street Journal
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