CIBC sees mining deals picking up in 2013HEINZ-PETER BADER/Reuters
Next year is likely to bring a rebound in mergers in the mining business, after a relatively quiet 2012.
That's the outlook from Canadian Imperial Bank of Commerce's investment bankers, who are usually among the busiest in Canada when it comes to advising on corporate combinations.
In the past year or so, mining companies have looked more at keeping costs down on their existing projects than buying new growth opportunities, CIBC mergers and acquisitions head Mike Boyd wrote in a report.
How slow has it been? So far in 2012, mining has been only 9 per cent of total Canadian M&A activity, a huge drop from the average 19 per cent market share for the sector in the three prior years.
"We believe there will be a shift to growth through acquisitions in 2013 with commodity prices remaining at historically high levels as companies look to invest cash flow," Mr. Boyd said.
Other busy sectors are likely to be energy, power and utilities and real estate.