The Canadian M&A market closed 2025 with exceptional strength, posting US$389.69 billion in total deal value—a US$118 billion increase over 2024. The story was megadeals over volume, with billion-dollar transactions accounting for US$321.9 billion and 78 deals compared to 54 in 2024.
Energy, utilities, and mining dominated with US$195.48 billion—over half of total Canadian M&A. Utilities deals rose 82% year-over-year, energy jumped 257%, and mining increased 220%, reflecting intense demand for infrastructure supporting digital transformation and AI.
Key Sector Highlights
- Infrastructure and Energy: Digital infrastructure drove major deals including Ovintiv’s US$3.8 billion NuVista acquisition, EIG’s MidOcean Energy acquiring 20% of PETRONAS’ Canadian assets, and KKR’s US$1.25 billion TotalEnergies solar portfolio purchase. The federal Major Projects Office launch signals policy support for infrastructure acceleration
- Mining and Gold: Gold deal value tripled, with eight US$1 billion+ transactions versus one in 2024. North American metals and mining M&A surged 139%, driven by critical minerals demand for energy transition and supply chain security
- Cross-Border Activity: Inbound M&A doubled to US$98.45 billion with 16 billion-dollar deals, demonstrating international confidence in Canadian resources despite economic uncertainties
- Mid-Market: Deals totaling US$41.56 billion exceeded 2024, led by mining (US$10.58 billion, 54% gold), financial services, and software. Defence and dual-use technology emerges as a 2026 watch sector
Challenges And Evolution
Dealmakers navigate heightened regulatory scrutiny under amended Investment Canada Act provisions, tariff uncertainty, and geopolitical volatility through sophisticated structuring and new risk protections.
Private credit has become a permanent M&A financing fixture, with hybrid structures—senior bank facilities plus private credit mezzanine—now standard in mid-market transactions. This evolution provides flexibility beyond traditional bank constraints and will continue driving 2026 activity as rates improve.
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