Canadian M&A Activity Holds Steady Amid Economic Uncertainty
Event summary
- Canadian M&A deal volume remained steady in H1 2026 with 658 deals announced, but total deal value dropped to $64 billion from last year's average of $97 billion.
- Average deal size eased in the first half of 2026 compared to 2025's average of $148 million due to fewer large transactions in key sectors.
- Energy, agri-food, and insurance sectors are driving M&A activity as companies seek scale and resilience against global instability.
The big picture
Canadian dealmakers are prioritizing M&A as a tool to navigate global instability, focusing on scaling operations and strengthening supply chains. The energy sector is seeing tailwinds from geopolitical conflicts, while the agri-food industry is driven by climate volatility and food resilience priorities. In insurance, domestic carriers are capitalizing on foreign insurers reassessing their Canadian operations.
What we're watching
- Economic Uncertainty
- How prolonged uncertainty around North American free trade and below-potential GDP growth will impact Canadian M&A activity in the second half of 2026.
- Sector-Specific Dynamics
- Whether the energy sector can sustain high deal volumes amid inflationary pressures and increased diligence requirements.
- Strategic Shifts
- The pace at which domestic insurance carriers will acquire foreign platforms to build scale and strengthen capabilities.
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