By Divya Rajagopal
TORONTO, Oct 6 (Reuters) – The slump in Canada's mergers and acquisition activity extended into the third quarter as volatile stock markets and rising borrowing costs spooked sentiment for dealmaking, with equity-linked issues slumping to the lowest in 27 years.
Despite the sharp fall, some bankers are beginning to see opportunity. HSBC Plc's potential sale of its Canada unit, worth up to C$10 billion ($7.3 billion), and Dye & Durham's A$1.27 billion ($815.85 million) bid for Link Administration's corporate markets and banking segments are among the transactions that could keep bankers busy for the rest of the year.
M&A deals in the three months ended Sept. 30 dropped 52% to $37 billion, the lowest since 2020, taking the tally for the first nine months of the year to $182 billion, a drop of 28% from a year ago, according to data released by Refinitiv on Thursday. The drop in Canadian M&A volumes is in line with the global trend.
Canadian tech company OpenText Corp's $5.7 billion bid for UK-based Micro Focus International PLC, was the biggest deal last quarter, followed by Domtar Corp's $3.2 billion purchase of Resolute Forest Products Inc.
JPMorgan Chase was the top M&A adviser, working on $34 billion worth of deals in the first nine months, followed by Morgan Stanley and TD Securities.
Canadian equity and equity-related issues fell by 77% in the first nine months to C$11 billion, the lowest nine-month tally since 1995, Refinitiv said.
"Dealmaking in Canada continues to see lower market sentiment and volumes, similar to other markets around the world, yet we see meaningful opportunities in the current environment," said Alex Graham, head of Rothschild Canada.
Royal Bank of Canada led the league table for equity issuance, underwriting roughly C$2 billion in equity deals, followed by Scotia Bank and Bank of Montreal .
Energy and power companies led the equity financing, raising C$3.1 billion in first nine months of 2022.
"I think there's a fair amount of uncertainty right now about just what the next few months will hold," said John Clifford, chief executive of McMillan LLP, a Toronto-based law firm that specializes in mergers and acquisitions. ($1 = 1.3722 Canadian dollars) ($1 = 1.5567 Australian dollars) (Reporting by Divya Rajagopal; editing by Jonathan Oatis)
Yahoo Finance Live anchors discuss the decline in stock for AMD after issuing preliminary third-quarter results.
Shares of tech giant Microsoft (NASDAQ: MSFT) fell hard today, down some 4.5% as of 12:30 p.m. ET. Microsoft is considered somewhat defensive by tech standards, so it was rare to see the stock down so much in a day. Last night, AMD pre-announced revenue for its September quarter, which came in far below expectations.
Even if the economy falls into a deep recession, these cash-generating companies are going to be fine.
Seana Smith checks out several stocks and sectors trending in the after-hours trading session, including the semiconductor industry following President Biden's export restrictions on China.
Everyone knows that you should buy low and sell high if you want to turn a profit in the markets. The trick is finding the bottom, to know when to buy. Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, sees the market bottom hitting in the next couple of weeks, making the end of October the right time for investors to buy in. Referring to some recent predictions by market technician Larry Williams, Cramer says, “The bear market is more or less… toast and, even if the current rally s
Insigneo CIO Ahmed Riesgo and Todd Sohn, Managing Director of Technical Strategy at Strategas, a Baird company, join Yahoo Finance Live to discuss the market outlook amid the Fed's interest rate hikes and recent employment data, and also talk about trading in volatile or recessionary periods.
The stock is down more than 12% so far this year and has a 52-week low of $18.89 and a 52-week high of $41.56. The stock slid when a federal judge pushed back a hearing until Jan. 5 regarding a lawsuit opposing the company's Thacker Pass lithium mine in Humboldt County in Nevada. Opponents of the mine are trying to get the court to overturn the mine's approval, set by then-President Donald Trump in January 2021.
Investors listen to Warren Buffett because of his long-term ability to beat the S&P 500. Between 1965 and 2021, a 56-year timeframe, his Berkshire Hathaway portfolio has logged average returns of 20.1%. Berkshire has also beat the indexes in 2022, with Berkshire stock falling 6% since January versus almost 20% for the S&P 500.
Here are the markets that will be open on Columbus Day, also recognized as Indigenous Peoples' Day, on Monday, Oct. 10.
Tesla stock is forming a bearish head-and-shoulders pattern. And with CEO Elon Musk likely selling more stock to fund his Twitter purchase, shares of the electric-vehicle giant might have further to fall.
Bank of America Senior Semiconductor Analyst Vivek Arya assesses the outlook of semiconductor stocks amid waning demand and export restrictions on China
AMD stock is hitting 52-week lows as it reports disappointing preliminary revenue results. Here's when to buy the chipmaker's shares.
NIO Inc. stock is trending on the Yahoo Finance Platform. Here is a visualization of $NIO performance over time, how that performance compares to the wider industry, and analyst projections for the current quarter.Check out the ticker page here.
The message is simple. Be greedy when others are fearful.
The chip sector melted down Friday for its third 6% one-day drop of the year after U.S. regulators moved to pump the brakes on China's military ambitions as it issued wider restrictions on semiconductor and AI technology that can be sold to the world's second-largest economy.
Many S&P 500 investors are convinced a recession is on the way. And if it is, you'll want to know which stocks to avoid.
Semiconductor maker Advanced Micro Devices issued a third-quarter revenue warning Thursday after the close of trading. Let's check on the charts and indicators again. Our last review on September 27 was not encouraging.
J.P. Morgan’s Chair of Global Research Joyce Chang sits down with Yahoo Finance Live to talk about how markets are digesting September jobs report data, the state of the labor force participation rate, and how the Fed considers this data in its interest rate hikes.
Tesla (NASDAQ: TSLA) is arguably one of the most innovative companies in the world. The business is growing rapidly as consumers look to electric vehicles to offset rising gas prices. In this video, I will consider whether the stock is a buy using my beginner-friendly framework for analysis.
Yahoo Finance's Brian Sozzi breaks down the stat of the day from Goldman Sachs on the potential downside to the S&P 500 from the Fed.