Mergers and acquisitions in Canada’s oil and gas sector are off to a record start this year as companies take advantage of improved oil prices as the global pandemic recedes.
Oilfield services provider Secure Energy Services' (TSX:SES) proposed $478-million merger with Tervita Corp. (TSX:TEV) announced earlier in March took year-to-date Canadian energy sector deals to a record $18 billion, according to data from Dealogic.
Canadian energy sector deals made up 16.2% of global volumes of $111.4 billion between the start of the year and March 18, the highest amount since 2002, the data showed. While U.S. year-to-date activity totaled $26.1 billion, it was below the record $83.6 billion recorded in 2017.
The number of mergers and acquisitions demonstrates that the Canadian energy sector is ready to grow as oil prices rebound and as global fuel demand rises this year.
Investors are applauding the energy sector deals, with acquirers’ stock climbing in the aftermath of announcements. Shares of Secure Energy are up 10% since the merger was announced, outperforming the Canadian energy index, which has fallen 3% over the same period.
