Canadian M&A activity down in first half of 2010

Canadian mergers and acquisitions (M&A) activity is down 30% over the first half of 2010, compared to the same period last year, according to a mergermarket Canada survey.
Overall, Canadian M&A activity totalled US$29.6 billion, down from the US$42.5 billion in the first half of 2009, and the lowest recorded half-year total since 2005.
Mega-deals of US$500 million and above showed a downward trend, dropping from US$91.8 billion in the second half of 2007 to US$18.1 billion as of the first half of 2010.
“Deal volume, however, has remained relatively stable in Canada,” mergermarket says in its M&A Round-up for H1 2010. “H1 2010 saw 210 deals announced in the region compared to 153 deals in H1 2009.”
Only 2% of the 2010 deals were in the financial services sector.
In the insurance area, the report lists Fairfax’s targeting of Zenith National Insurance Corporation ($US1.4 billion) and the Westaim Corporation’s targeting of Jevco Insurance Company ($249 million) as the two biggest deals in the first half of 2010.