The biggest mergers and acquisitions in the history of Canada

We've had some major mergers and acquisitions in Canadian history, ranging from the latest tech to some of the oldest industries in the world. The results of these business mergers have seen lasting impacts in how Canadians live, work, and play.

In this article, we will list the biggest mergers and acquisitions (M&A) in the history of Canada, including some discussions of the list's top five transactions. We hope lawyers all over Canada working in the M&A field are inspired to know that they too can work on M&As with global impact from right here in their home country!

List of the biggest mergers and acquisitions in the history of Canada

All throughout Canadian history, here's a rundown of the largest M&As in terms of the transaction's value:

Here's a list of some spinoffs, which may also be considered as part of the biggest M&As in the history of Canada:

• Bell Canada Enterprises (BCE) Inc.'s spin-off to Nortel Networks Corp. (2000): US$59.97 billion
• EnCana Corp.'s spin-off to Cenovus Energy Inc. (2008): US$20.26 billion

We'll discuss the top five biggest M&A transactions below.

Rio Tinto – Alcan

On top of our list is the acquisition of Alcan Inc. by the Rio Tinto Canada Holdings Inc. in 2007, making it as the biggest M&A in history in the Canadian M&A market, so far.

Rio Tinto's US$38.1 billion friendly acquisition of Canada's Alcan created the world's largest aluminum producer. This outbids the hostile offer of Alcoa, another US aluminum producer.

The combined aluminum group, now named Rio Tinto Alcan, became a Montreal‑based subsidiary of Rio Tinto. By the end of 2007, Rio Tinto had secured almost all of Alcan's shares and moved to compulsorily acquire the rest of it.

In 2023, Rio Tinto Alcan entered in another big deal for Canada's M&As, when it formed a joint venture with the Ontario-based Giampaolo Group. This joint venture, valued at US$1.4 billion, will both manufacture and market recycled aluminum products.

Lawyers and firms who worked for the Rio Tinto – Alcan acquisition

Ogilvy Renault LLP was the lead outside counsel for Alcan, while Latham & Watkins was Rio Tinto's counsel. Several lawyers and law firms were also involved, such as:

• David L. McAusland who was Alcan's previous Executive Vice President, Corporate Development and Chief Legal Officer
• Goodmans LLP acted as the Canadian counsel to the syndicate of lenders in the deal, which included The Royal Bank of Scotland, among others
• Fasken Martineau DuMoulin LLP advised the special committee of Alcan's board of directors on both the deal of Rio Tino and Alcoa's offer

Vivendi – Seagram

At the second largest M&A transaction in Canada is Vivendi SA's takeover of Seagram Co. in 2000. This takeover created the global media giant "Vivendi Universal" and ended the Bronfman family's control of Seagram's Canadian business empire. The share-swap merger valued Seagram shares at US$77.35, giving Seagram investors Vivendi stock and board representation.

While Vivendi kept Seagram's entertainment and communications assets, it eventually sold Seagram's liquor business for $8.15 billion in 2001 to Europe's Diageo and Pernod Ricard. This deal marked Seagram's shift from distilling to media and its eventual breakup.

Lawyers and firms who worked for the Vivendi – Seagram takeover

Blake, Cassels & Graydon LLP acted as the Canadian counsel to Vivendi, with the team led by Alan Bell.

On the other hand, Osler, Hoskin & Harcourt LLP was Seagram's Canadian counsel, with its team led by Clay Horner.

Canadian Pacific Railway – Kansas City Southern

The biggest Canadian M&A deal in 2021, and one of the biggest in Canada's history in terms of impact, is the merger of the Canadian Pacific Railway and the Kansas City Southern. This deal birthed Canadian Pacific Kansas City Ltd (CPKC), with its headquarters now in Calgary.

As a result, the CPKC now connects all of Canda, the US, and Mexico in a single transnational rail network. After hurdling several objections, both from regulatory bodies such as the US Surface Transportation Board and other competitors, the deal was finally completed in April 2023.

This merger of Canadian Pacific Railway and Kansas City Southern was also among Lexpert's 2022 Awards of Excellence for Top Deals. It sits along with Alstom's €4.4-billion acquisition of Bombardier Transportation when it comes to the biggest M&As in the transportation sector of the same year.

Watch this video to learn more about this merger, which brought CPKC to life:

Find more of the biggest mergers and acquisitions in history by checking our section on Deals in CL+. You'll find all of the latest M&As in this section!

Lawyers and law firms involved in the CPKC merger

For Kansas City Southern, acting as the lead Canadian firm was Davies Ward Phillips and Vineberg LLP, with Vince Mercier as counsel. As for Canadian Pacific Railway, serving as its Board of Director's legal counsel was Blake, Cassels & Graydon LLP.

Osler, Hoskin & Harcourt LLP were also involved, acting as the Canadian counsel to the underwriters for both the Canadian and US offerings.

Enbridge – Spectra Energy

The largest foreign acquisition completed by a Canadian company at that time was Enbridge's merger with Spectra Energy. When the dust settled, this stock-for-stock transaction made Enbridge one of the largest energy infrastructure companies in North America.

While the deal was announced in September 2016, it was only completed in February 2017, with the transaction amounting to around US$28 billion (or C$37 billion). This combined the liquid-weighted midstream assets of Enbridge with Spectra Energy's network of primarily gas-related midstream assets, both found in Canada and the US.

Law firms involved in the Enbridge's merger with Spectra Energy

Enbridge was represented by McCarthy Tétrault LLP in Canada, while Sullivan & Cromwell LLP represented it in the US. At the other side of the table, Goodmans LLP represented Spectra Energy in Canada, with Wachtell, Lipton, Rosen & Katz LLP and Skadden, Arps, Slate, Meagher & Flom LLP as its US counsels.

CNOOC – Nexen

The purchase of China's state-owned China National Offshore Oil Company (CNOOC) of Nexen Inc., a Calgary-based upstream oil and gas company, is among the biggest M&As in the history of Canada.

Announced in 2012, it was completed in February 2013 after getting the approvals from several state and stock market regulators, both in Canada and the US.

Dubbed as the one of the single largest foreign takeovers by a Chinese company, this M&A deal gave CNOOC access to securing oil sands and offshore assets in several regions. While the Canadian government approved the deal under the Investment Canada Act's "net benefit" test, it said that future takeovers by foreign state-owned enterprises would be approved only in exceptional cases.

Here's a video which shows how the Competition Bureau reviews M&A transactions:

Looking for some of the other biggest mergers and acquisitions in history? Check out Lexpert's directory of Big Deals, which lists other large M&A transactions in Canada.

Law firms involved in the CNOOC's acquisition of Nexen

CNOOC's legal counsel included:

• Stikeman Elliott LLP
• Davis Polk & Wardwell LLP
• Herbert Smith Freehills LLP

Nexen's legal team included:

• Blake, Cassels & Graydon LLP
• Paul, Weiss, Rifkind, Wharton & Garrison LLP
• Burnet, Duckworth & Palmer LLP

Torys LLP acted as the Canadian counsel to the lenders for the CNOOC – Nexen acquisition.

FAQs on M&As

What is the difference between merger and acquisition in Canada?

The terms "mergers" and "acquisitions" in Canada may have been used interchangeably, but there are some differences:

• merger: a new company will be formed when two separate companies merge into one
• acquisition: the larger company takes over (or purchases) a smaller company (also called the target company); or when the larger company only acquires or purchases a branch or a division of the smaller company

Another difference is that mergers usually take place between companies of similar sizes. Acquisitions happen between a larger company and a smaller company.

Who regulates mergers and acquisitions in Canada?

The regulation of mergers and acquisitions in Canada is under the Competition Bureau, headed by the Commissioner of Competition. The Bureau is tasked with the enforcement of the Competition Act, the federal legislation on mergers and acquisitions in Canada.

The Competition Act

The Competition Act governs mergers and acquisitions in Canada and other acts to ensure healthy competition among Canadian businesses.

The Act provides for:

• certain review procedures during mergers and acquisitions in Canada;
• crimes regarding monopolies and cartels; and
• civil reviewable matters that are under the jurisdiction of the Competition Tribunal

Bookmark our Practice Areas page for more articles on Canadian law and other news about the biggest mergers and acquisitions in history, and don't forget all of the additional data and insights available to you on CL+!