Crosbie & Company Canadian Mergers & Acquisitions Report for Q4 2025

M&A Maintains Momentum into Year-End as Dealmakers Adapt to Uncertainty 

Canadian M&A activity continued its upward trajectory in Q4 2025, finishing the year off strong with 672 transactions and aggregate deal value of $101B. In total, there were 2,560 transactions announced in 2025 totaling $422B. The year was a tale of two markets as mega-deals grabbed headlines and the mid-market stayed steady with 2025 recording the best year in deal values since 2022.     

Year-end deal activity remained resilient as buyers and sellers adjusted to a reality where macro and geopolitical uncertainty is part of the operating environment, not a temporary disruption. In that context, deals are being done with clear strategic fit and a straightforward path to closing, supporting continued appetite for high-quality Canadian assets. For 2026, the backdrop looks more supportive, with a steadier rate environment, favourable fiscal policy and improving economic sentiment, while private equity’s need to monetize mature holdings and return capital should contribute to additional deal flow.   

“The fourth quarter and entire second half of 2025 showed a remarkable reversal of sentiment and activity from the preceding quarters as adaptability and resiliency prevailed,” said Stephen Ng, Managing Director at Crosbie & Company Inc. “As market participants adjusted to the shifting macro-environment, many took advantage of attractive debt and equity markets to consummate strategic deals of scale.” This has been reflected in the strength of deal value and volumes at the larger end of the market. Ng also added “looking ahead, the conditions fueling dealmaking are expected to carry over to 2026 and into other segments of the M&A market, including the mid-market where momentum is accelerating.”

There were 20 mega-deals announced this quarter (deals valued above $1B), totaling $79.3B, as mega-deals continued to dominate overall deal value. Largest deals of the quarter included Coeur Mining’s $10.2B acquisition of New Gold Inc. and Onex’s $9.8B acquisition of Convex Group, a specialty property and casualty insurance and reinsurance company, acquired in partnership with AIG as a long-term insurance platform supporting Onex’s continued shift toward a more scaled, fee-driven asset management model.

The mid-market, defined as deal enterprise value below $250M, quietly delivered its strongest quarter of the year and highest deal value over last 11 quarters. Confidence is returning but with discipline – sellers with credible growth stories are attracting disproportionate interest from high conviction buyers.  

Metals and Mining and Precious Metals were the most active sectors this quarter, recording 101 and 89 transactions, respectively (28% of total announcements), supported by higher metal prices and increased capital flowing into the sector. Real Estate and Financial Services generated the largest aggregate deal value at $22.7B and $18.8B, respectively. Notable declines in announced transactions were seen in Information Technology (-23) and Industrials (-13).

As expected, cross-border M&A remained a major driver of Canadian deal activity in 2025, accounting for 45% of transactions and 61% of total deal value. Canadian acquirers completed 709 foreign acquisitions over the year, with the United States continuing to be the primary destination despite persistent political noise, with 388 transactions representing 60% of outbound activity. On the inbound side, U.S. buyers acquired 301 Canadian targets, representing 69% of all foreign acquisitions of Canadian companies.

Overview

• Deal activity remained strong in the fourth quarter with 672 announced transactions, up 2% from Q3
• Aggregate deal value fell from the prior quarter’s decade-high level but remained very strong at $101B
• There were 433 Canadian companies acquired in the fourth quarter, with an aggregate value in excess of $40B
  • A total of 1,641 Canadian companies were acquired in 2025

Mega-Deals 

• Mega-deals continued to be a major driver of deal value in Q4, with 20 transactions announced representing $79.3B of deal value, contributing to a total of 71 mega-deals in 2025 with aggregate value of $352B
• Real Estate led mega-deals by value, including Fairfax’s $9.0B acquisition of Kennedy-Wilson Holdings, Inc, and Brookfield Office Properties and Singapore’s sovereign wealth fund GIC’s $8.5B acquisition of National Storage REIT in Australia

Industry Sector Activity

• Despite an increase in deal count quarter over quarter the only sectors to see deal count increase were Precious Metals (+37), Metals and Mining (+26), Real Estate (+8), and Consumer Staples (+7) 
• Notable decreases in deal count were seen in Information Technology (-23), Industrials (-13), and Financials (-12), Materials (-7) and Utilities (-5)
• Real Estate and Financials generated the largest aggregate deal volume at $22.8B and $18.8B respectively

Breakdown by Transaction Size

• 80% of transaction activity in the quarter was from mid-market transactions (deal value below $250M for deals with disclosed values)
• Mid-market transactions were valued at $8.3B and 8% of total M&A value

Canadian Domiciled versus Foreign M&A Targets

• In the fourth quarter, $41.2B of Canadian companies were acquired across 433 transactions, including $26B of acquisitions by foreign buyers across 113 transactions
• Canadian firms remained active through year-end, completing 502 acquisitions during the quarter, the majority of which involved domestic targets (320 transactions, representing 64% of deal value)

Cross-Border Deals

• Cross-border activity remained robust mainly driven by outbound activity while inbound activity declined slightly 
• Cross-border deals represented 44% of total activity and 72% of total deal value
• US buyers made 65% of the 113 Canadian target cross-border acquisitions while representing 89% of inbound deal value

Deals by Provincial Domicile

• Ontario remains the most active province this quarter with 154 deals valued at $22.9B
• Quebec recorded above-average activity this quarter, with 77 deals totaling $10B