Canadian oil patch transactions hit record $ 18 billion
Mergers and acquisitions in Canada’s oil and gas sector got off to a record start this year, with companies benefiting from improving oil prices as the global pandemic recedes.
Oilfield service provider Secure Energy Services (TSX: SES) has proposed a $ 478 million merger with Tervita Corp. (TSX: TEV) announced earlier in March took Canadian energy sector deals to a record high of $ 18 billion, according to Dealogic data.
Transactions in the Canadian energy sector accounted for 16.2% of global volumes of $ 111.4 billion between the start of the year and March 18, the highest amount since 2002, according to the data. While activity in the United States since the start of the year totaled $ 26.1 billion, it was lower than the record of $ 83.6 billion recorded in 2017.
The number of mergers and acquisitions shows that the Canadian energy sector is poised to grow as oil prices rebound and global fuel demand increases this year.
Investors applaud deals in the energy sector, with acquirer shares climbing following announcements. Shares of Secure Energy have risen 10% since the merger was announced, outperforming the Canadian Energy Index, which fell 3% over the same period.