Crosbie & Company Canadian Mergers & Acquisitions Report for Q1 2026

The M&A Train Continued to Roll in Q1

Canadian M&A activity opened 2026 on a firm footing, with 680 announced transactions, up 1% from the prior quarter and continuing the general upward trend that we have watched over the prior 8 quarters. Aggregate deal value moderated somewhat to $76B but remained strong by most historical standards. This followed the three prior record quarters where very high aggregate deal values reflected exceptional mega-deal activity.

Market conditions in Q1 remained generally constructive for M&A. Activity benefited from a settled financing backdrop, as central banks held rates steady, valuations remained buoyant in most sectors, and public markets were open and supportive. Dealmakers continued to navigate a familiar backdrop of tariff and geopolitical uncertainty, but decent fundamentals helped buyers see their way through on many transactions, particularly those with clear strategic fit. Events partway through the quarter in the Middle East have raised some new uncertainties related to inflation pressure through higher oil prices as well as knock-on effects in transportation and other input costs, which could impact interest rate expectations as the year progresses. But for now, all indications are that the market remains wide open for M&A. 

“In Q1, M&A continued to power along, which is reflected both in robust activity and the strong aggregate value for the quarter,” said Sadat Mirza, Managing Director at Crosbie. “In addition to good economic and financial market ingredients, the psychology for dealmaking is strong as well,” he added. “The hesitation that we sometimes encountered in early 2025 is now well behind us as parties have become used to what they now regard as higher levels of geopolitical noise.”

There were 15 mega-deals announced in the quarter (deals valued above $1B), totalling $58B in value. Information Technology, Utilities, and Energy led mega-deal activity, with several transactions tied in some way to the broader theme of AI-driven demand for data centre capacity and power. Mitsubishi Corporation’s $10.5B acquisition of Aethon United was linked to growing natural gas and power needs from AI and data centres, while Ecolab’s $6.5B acquisition of Calgary-based CoolIT Systems was directly positioned around liquid cooling for next-generation AI workloads.

The mid-market (transactions valued below $250M) accounted for 86% of all announced deals with disclosed values. Mid-market deal count was largely steady quarter-over-quarter at 229 transactions, broadly consistent with historical levels.

From a sector perspective, deal count increased in Industrials (+27), Information Technology (+25), Energy (+18), and Utilities (+5). The largest declines were in Metals and Mining (-21), Precious Metals (-17), and Health Care (-15). Information Technology, Utilities and Energy had the largest aggregate deal values at $15.6B, $14.7B and $14.0B, respectively.

Cross-border M&A remained meaningful in Q1, representing 47% of deal count and 64% of aggregate value. Canada-U.S. transactions accounted for 60% of cross-border count and 62% of value, while a weaker Canadian dollar likely supported U.S. buyer interest in Canadian assets. Inbound activity picked up from Q4, reinforcing Canada’s appeal to cross-border capital.

Overview 

• Deal activity remained strong in the first quarter with 680 announced transactions, up 1% from Q4 and continuing the upward trend that developed through the second half of 2025
• Aggregate deal value moderated to $76B as mega-deal activity declined from the elevated levels seen in the prior three quarters
• 457 Canadian companies were acquired in the quarter, up from 433 in Q4, with aggregate value of $41B assets

Mega-Deals 

• 15 mega-deals were announced in Q1 2026, representing $58B of aggregate deal value
• The largest transaction was Mitsubishi Corporation’s acquisition of Aethon United, followed by Brookfield and La Caisse’s take-private of Boralex Inc. and Ecolab’s acquisition of CoolIT Systems
• Energy, Information Technology and Utilities were prominent in the quarter’s largest transactions, reflecting continued capital flows into AI infrastructure, data-centre enablement, power and energy assets

Industry Sector Activity

• Industrials and Information Technology were the most active sectors, with 113 and 112 announced transactions, respectively
• Notable increases in deal count were seen in Industrials (+27), Information Technology (+25), Energy (+18) and Utilities (+5)
• The largest declines in deal count were in Metals and Mining (-21), Precious Metals (-17) and Health Care (-15)
• Information Technology, Utilities, and Energy generated the largest aggregate deal values at $15.6B, $14.7B and $14.0B, respectively

Breakdown by Transaction Size

• Mid-market activity, defined as transactions below $250M, accounted for 86% of disclosed deal count
• There were 229 disclosed mid-market transactions in the quarter, with aggregate value of $6.8B

Canadian Domiciled versus Foreign M&A Targets

• Acquisitions involving Canadian targets increased to 457 transactions in Q1, up from 433 in Q4, with aggregate value of $41.1B
• Domestic buyers acquired 325 Canadian targets, while foreign buyers acquired 132 Canadian targets
• Foreign buyers represented 29% of Canadian-target transaction count but 64% of Canadian-target transaction value
• Canadian firms remained active internationally, completing 186 acquisitions of foreign targets

Cross-Border Deals

• Cross-border transactions represented 47% of total activity and 64% of aggregate deal value in Q1 2026
• Canada-U.S. activity remained the dominant cross-border corridor, representing 60% of cross-border count and 62% of cross-border value

Deals by Provincial Domicile

• Ontario remained the most active province by deal count, with 171 Canadian-target transactions
• Quebec generated the largest aggregate Canadian-target deal value at $13.4B
• Alberta activity increased to 68 deals valued at $8.1B, reflecting continued strategic interest in the energy market